MEXC Ventures, the funding arm of crypto alternate MEXC, is investing a complete of $36 million into Ethena and its USDe stablecoin, in response to a press launch.
The agency is making a strategic funding of $16 million in Ethena and purchased $20 million in USDe stablecoin to broaden the adoption of artificial {dollars} in decentralized finance (DeFi) and provide a substitute for fiat-backed stablecoins, the assertion mentioned.
The transfer comes after Ethena, the developer of USDe, raised $100 million final 12 months, 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 an alternative, it maintains its peg by collateralizing stablecoins and taking futures positions with massive open curiosity.
USDe’s market cap has risen to almost $6 billion, whereas extra conventional stablecoins at the moment have market caps above $50 billion, in response to CoinMarketCap knowledge. The overall market cap for stablecoins is at the moment above $200 billion.
MEXC’s backing comes as competitors within the stablecoin market intensifies, with initiatives looking for revolutionary 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 larger funding,” mentioned Tracy Jin, COO of MEXC.
“MEXC sees Ethena as a key participant within the growth of various stablecoins that may drive the crypto trade 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
