Recent news has brought to light a promising development that promises to change the way stablecoins are perceived and used in the market. Ethena Labs, an industry innovator, announced that it will now use Bitcoin (BTC) to support USDe, its flagship stablecoin, marking a significant advancement in its strategy to offer a censorship-resistant and broadly scalable stablecoin.

USDe, so far supported by a supply of 2 billion dollars, is now aiming for unprecedented expansion. According to Ethena Labs, this shift to Bitcoin as a backing asset is “a crucial unlock” that will enable USDe to scale significantly, aiming for even greater stability and security for its users.

This transition is supported by a unique structure called the “Internet Bond”, an innovative concept that amalgamates the yields of staked Ethereum and the financial dynamics of perpetual and futures markets. This approach promises to create a dollar-denominated savings vehicle for users in permitted jurisdictions, utilizing the benefits of both Ethereum and Bitcoin.

The choice of Bitcoin over Ethereum for this critical role was not random. Ethena Labs points to Bitcoin’s superior liquidity and increased interest in its derivatives options as key reasons for this decision.

While open interest (OI) in BTC on major exchanges (excluding the Chicago Mercantile Exchange) jumped from 10 billion to 25 billion dollars in just one year, Ethereum saw its OI grow from 5 to 10 billion in the same period.

Now, with the support of BTC, USDe is ready to not only scale but also provide a robust and stable savings option for cryptocurrency investors around the world, as reflected live on the Ethena dashboard.

At the time of publication, the price of Ethena (ENA) was quoted at US$1.12, up 10% in the last 24 hours.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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