StablecoinX has secured an additional $530 million in funding through a private investment in public equity (PIPE) deal, bringing its total commitments to $890 million. The funding round, which priced shares at $10 each, was backed by prominent investors including YZi Labs (formerly Binance Labs), Brevan Howard, Susquehanna Crypto, and IMC Trading, alongside returning investors Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures.
The proceeds will be used to expand digital asset holdings, with a significant portion allocated to acquiring discounted locked ENA tokens from a foundation affiliate. Upon completion of its merger with TLGY Acquisition, the entity will be renamed StablecoinX Inc. and will hold more than 3 billion ENA tokens, making it the first dedicated treasury business for the Ethena ecosystem.
Ethena, issuer of synthetic stablecoins USDe and USDtb, employs a delta-neutral hedging model to maintain stability while capturing yield from crypto markets. Marc Piano, director at the Ethena Foundation, stated the capital would "strengthen ecosystem resilience, deepen ENA liquidity, and support the sustainable growth of USDe, USDtb, and future Ethena products."
The announcement builds on a July 2021 filing that detailed an initial $360 million PIPE commitment and a $260 million ENA buyback. StablecoinX plans to list on Nasdaq under the ticker USDE upon merger completion.
Ethena's growth is notable: USDe became the fastest stablecoin to cross $10 billion in supply, reaching $12.6 billion by September, surpassing Tether's USDT and Circle's USDC. It now ranks as the third-largest stablecoin issuer. Token Terminal data shows a 31% increase in USDe supply over the past month, with cumulative revenue exceeding $500 million by August and weekly earnings recently topping $13 million.
Additionally, USDtb, Ethena's fiat-backed stablecoin, is being developed under the compliance framework of the GENIUS Act, signed into law by President Trump on July 18. The act aims to cement the dollar's dominance by backing dollar-pegged stablecoins in global markets, with the Treasury Department projecting the stablecoin market to exceed $2 trillion by 2028.