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Ethena launches USDe payments app with up to 6% rewards

Created at 1 Sep · 4:21 PM1 source↑ Market-relevant
IN SHORT

Ethena has launched a self-custodial payments app built around its USDe synthetic dollar, enabling everyday transactions, savings, and cross-border transfers with annualized rewards of up to 6%. The beta rollout is initially available in 48 countries, excluding the US and EU.

Key Numbers

6%annualized rewards offered
48countries in beta rollout
400initial users for beta
$4.1 billionUSDe market capitalization
6thlargest stablecoin by market cap
95%net revenue proposed for ENA buybacks
$7.5 billionUSDe supply target for buybacks
68%ENA token rally over past month

Who's Involved

Ethena
Crypto protocol that launched the USDe synthetic dollar and its associated payments app
USDe
Synthetic dollar asset at the core of Ethena's new payments app
Avalanche
Exclusive settlement layer for Ethena Pay payments and transfers
Iron
Backend infrastructure provider for Ethena Pay

↳ Why This Matters

The launch of Ethena Pay signifies a move to integrate synthetic dollar stablecoins into mainstream financial use cases beyond speculative trading, potentially increasing adoption and utility for crypto-native assets. The offering of high rewards and payment functionality could attract users seeking yield and convenient transaction methods.

Key facts

  • Ethena launched a self-custodial payments app called Ethena Pay, centered on its USDe synthetic dollar.
  • The app allows users to earn up to 6% in annualized rewards on their USDe holdings.
  • It supports everyday payments, savings, and cross-border transfers, with fiat onramps and payment card functionality.
  • The beta version is available in 48 countries across Latin America, the Caribbean, Africa, and Asia, with limited initial user access.
  • USDe, a synthetic dollar backed by crypto collateral and hedging strategies, has a market capitalization of around $4.1 billion.
  • Ethena's governance token, ENA, has seen significant rallies, with a proposal to use 95% of net revenue for buybacks.

Ethena has launched a new global money app, Ethena Pay, built around its USDe synthetic dollar. The self-custodial application aims to integrate USDe into everyday financial activities such as payments, savings, and cross-border transfers, offering users annualized rewards of up to 6%.

The beta version of Ethena Pay is currently available in 48 countries across Latin America, the Caribbean, Africa, and Asia, though initial access is restricted to 400 users, with expansion planned weekly. The app allows users to deposit fiat or crypto, which are then converted into USDe. It also provides IBAN details for seamless movement of funds between bank accounts and local currencies. Avalanche serves as the exclusive settlement layer for all transactions within the app.

Ethena Pay is not yet available in the United States, European Union, Canada, Taiwan, or South Korea, but the company anticipates expanding into these markets during the beta phase, pending regulatory approvals. USDe, Ethena's synthetic dollar, maintains its peg through crypto collateral and hedging strategies, including derivatives, and has grown to a market capitalization of approximately $4.1 billion, positioning it as the sixth-largest stablecoin.

Alongside USDe, Ethena operates ENA, its governance token. The ENA token has experienced significant price appreciation recently, rallying about 68% in the past month. A recent proposal suggests directing 95% of the protocol's net revenue towards ENA buybacks once USDe's circulating supply reaches $7.5 billion, a move that has further boosted the token's performance.

Frequently asked questions

Ethena Pay is a self-custodial money app launched by Ethena that allows users to hold, spend, and earn rewards on its USDe synthetic dollar.

Users can earn up to 6% in annualized rewards on their USDe holdings through the Ethena Pay app.

The beta rollout includes 48 countries across Latin America, the Caribbean, Africa, and Asia. It is not initially available in the US, EU, Canada, Taiwan, or South Korea.

USDe is a synthetic dollar created by Ethena, designed to maintain its value near $1 using crypto collateral and hedging strategies, without relying on traditional banking infrastructure.

What Happens Next

01Ethena expects to expand user access to the Ethena Pay app weekly.
02Ethena anticipates expanding into the US, EU, Canada, Taiwan, and South Korea during the beta phase, subject to regulatory approval.
CME Headlines
  • Bitcoin futures break $80,000 as consumer confidence drops.
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  • Bitcoin futures break $80,000 as consumer confidence drops.
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How It Developed

Ethena launched a global money app utilizing its USDe synthetic dollar.
The Ethena Pay app allows users to hold USDe, earn up to 6% in rewards, and spend funds via a payment card.
The app supports fiat onramps and IBAN details for bank transfers.
Avalanche is the exclusive settlement layer for payments and transfers.
The beta rollout includes 48 countries, with initial access limited to 400 users.
Ethena Pay is not initially available in the US, EU, Canada, Taiwan, or South Korea.
USDe has a market capitalization of approximately $4.1 billion, making it the sixth-largest stablecoin.
Ethena proposed directing 95% of net revenue to ENA buybacks once USDe supply reaches $7.5 billion.

Sources

T1
Ethena launches USDe payments app, offers 6% rewardsThe self-custodial app brings USDe into everyday payments, savings and cross-border transfers, with annualized rewards of up to 6%.Cointelegraph

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