Ethena stands out as a rapidly growing crypto project that offers an alternative to leading stablecoins with its “synthetic dollar” token. The token gained value in digital asset markets after founder Guy Young detailed plans for a new offering aimed at traditional financial institutions.
New Product Offer
In his long blog post detailing the 2025 road map, Young announced that Ethena plans to enter the traditional finance industry with a new product called iUSDe. This product, expected to launch next month, will be a variation of Ethena’s staked stablecoin sUSDe and will include a wrapper contract that enforces transfer restrictions at the token level.
The roadmap also includes integration with the popular messaging platform Telegram and the creation of a private Ethena network. According to Young, having sUSDe within Telegram will function as a mobile neo-bank where users can transfer, spend and save.
“In this context, Ethena will take on the role of an interest rate arbitrage tool, pushing the convergence between interest rate markets and capital flows between DeFi, CeFi and TradFi,” Young said.
Network Development and Applications
Ethena’s expectations include evolving from a protocol that only issues one asset to an operational network by 2025. Similar to Binance’s BNB token model, this network envisions ecosystem applications airdropping certain portions of the token supply to those who stake ENA tokens.
According to published data, institutions such as BlockTower Capital, Delphi Venture, CMT Digital and Galaxy Digital are among the largest holders of ENA. Ethena’s USDe stablecoin has reached a market value of over $5.8 billion, becoming the third largest stablecoin after Circle’s USDC and Tether’s USDT.
It is stated that two applications have already been built on the Ethena network. The first is Ethereal, a decentralized trading platform powered by sUSDe; The second is an onchain options protocol called Derive, which uses sUSDe as the system’s main collateral asset.
Ethereal is expected to launch its testnet next month and Derive will launch its token within the next two weeks.
While Ethena aims to bridge DeFi, CeFi and TradFi, it plans to offer innovative solutions for traditional financial institutions. These developments are considered as part of efforts to expand the role of crypto projects in the financial ecosystem.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
