Ethena launches USDe payments app, offers 6% rewards
The self-custodial app brings USDe into everyday payments, savings and cross-border transfers, with annualized rewards of up to 6%.
Ethena has introduced a new payments app called Ethena Pay, which allows users to utilize its USDe synthetic dollar and reap up to 6% annualized rewards. This self-custodial app enables users to hold USDe through a dollar-denominated balance and spend funds using a payment card. The beta rollout is currently available in 48 countries across various regions, with an initial launch limited to 400 users, gradually expanding weekly.
The app supports fiat onramps and enables users to move funds to and from external bank accounts using IBAN details. Ethena Pay will use Avalanche as the exclusive settlement layer for payments and transfers. Users can deposit fiat or crypto, with the converted funds then turned into USDe. At present, the app is not available in the US, EU, Canada, Taiwan, or South Korea, but Ethena intends to expand into these markets during the beta phase, pending regulatory approval.
Ethena, the Ethereum-based protocol behind USDe, has a synthetic dollar designed to stay near a $1 value without traditional banking infrastructure. USDe is backed by crypto collateral and hedge strategies, like derivatives positions, to maintain its peg. The asset's market capitalization stands at around $4.1 billion, making it the sixth-largest stablecoin.
Ethena also operates ENA, the protocol's governance token, which has surged by 68% in the past month but remains below its previous highs. The Ethena Foundation has proposed allocating 95% of its net revenue from Ethena's core businesses towards ENA buybacks once USDe's circulating supply hits $7.5 billion. ENA has risen over 10% since the proposal and has gained 27% over the past week.
As of Tuesday, ENA traded at about $0.16, with a trading volume of roughly $595 million in the past 24 hours.
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