MEXC Ventures, the funding arm of crypto change MEXC, is investing a complete of $36 million into Ethena and its USDe stablecoin, in line with a press launch.
The agency is making a strategic funding of $16 million in Ethena and acquired $20 million in USDe stablecoin to increase the adoption of artificial {dollars} in decentralized finance (DeFi) and supply an alternative choice to fiat-backed stablecoins, the assertion mentioned.
The transfer comes after Ethena, the developer of USDe, raised $100 million final yr, which was backed by Franklin Templeton and Constancy Investments-affiliated F-Prime Capital, amongst others.
Often called an artificial stablecoin, USDe is not like conventional stablecoins like USDT and USDC in that it isn’t backed 1:1 by fiat belongings. As a substitute, it maintains its peg by collateralizing stablecoins and taking futures positions with massive open curiosity.
USDe’s market cap has risen to just about $6 billion, whereas extra conventional stablecoins at present have market caps above $50 billion, in line with CoinMarketCap information. The entire market cap for stablecoins is at present above $200 billion.
MEXC’s backing comes as competitors within the stablecoin market intensifies, with initiatives looking for modern fashions to make sure stability and accessibility.
“As demand for funding in bitcoin and different digital belongings continues to rise, stablecoins are set to draw even higher funding,” mentioned Tracy Jin, COO of MEXC.
“MEXC sees Ethena as a key participant within the growth of numerous stablecoins that may drive the crypto business ahead, supporting broader adoption and offering customers with extra secure and environment friendly monetary options.”
Learn extra: Stablecoin Market Cap Tops $200B as U.S. Sees Trade Serving to Keep Greenback Dominance
