Coinbase Ventures announced Tuesday that it has invested in Ethena after acquiring it. $ this Public market tokens.
Ethena said the two companies have also partnered “to grow on-chain financial and savings products.” Coinbase mentioned “deeper partnerships” including with Circle $USDC Stablecoin, according to social media posts.
$ this According to The Block’s pricing page, prices soared following the announcement, rising about 6% in the past 24 hours.
It’s unclear how Ethena and Coinbase will work together $USDCthe second largest stablecoin by total supply. Ethena is the publisher of. $USDe The “synthetic dollar” is designed to maintain a peg by combining dollar assets with delta-hedged crypto exposure through perpetual futures.
“We are excited to partner with Coinbase for the first time to support Coinbase’s Dollar Savings product. Next week’s integration will make Ethena products available to the company’s 100+ million user base for the first time,” Ethena founder Guy Young posted on X. “Given the evolving nature of Clarity Law, we expect further tailwinds for on-chain native products such as: $USDe Freed from idle balances on exchanges, Ethena is well-positioned to support this transition. ”
The Clarity Act, a crypto market structure bill stalled in Congress, will likely more clearly define whether platforms like Coinbase can reward users who hold funds in stablecoins, such as stablecoins. $USDC. Powerful banking lobbies have opposed measures that would allow stablecoin incentives similar to banks paying interest on deposits in savings accounts.
in $USDeIn the case of , the synthetic dollar has recently lost a significant amount of market capitalization and has been experiencing continuous outflows since the end of last year.
Synthetic Dollar will debut in early 2024 as a type of on-chain bond that uses a “delta-neutral” hedging strategy to maintain a peg to the dollar, making it different from all other stablecoins. The project attracted support from investors including Arthur Hayes’ family office Maelstrom and venture firm Dragonfly. Brevan Howard and Franklin Templeton also invested.
YZi Labs, a cryptocurrency investment firm backed by Binance founder Changpeng Zhao, who is also an investor in Ethena, increased its investment last September.
