Ethena Backs USDe with Tokenized Stocks on Binance

Ethena Labs has announced that it will back its USDe synthetic dollar with tokenized U.S. stocks on Binance, marking a significant expansion of its funding mechanism since launch.

According to Ethena, allocations began the same day as the announcement and will be in the form of Binance's bStocks, which track U.S. equities and ETFs and can be converted into the underlying shares on Binance.com subject to applicable laws.

Ethena will hedge these positions by shorting Binance’s USDT-denominated equity perpetual futures, a delta-neutral setup it has used with Bitcoin, Ether, and other crypto assets since USDe launched.

The move follows an approval framework from Ethena's Risk Committee for tokenized equity basis trades, which includes a set of rules for qualifying stocks on a venue. These rules include a minimum average open interest of $25 million in one-sided open interest over 14 days and 30 days of funding history.

Shunyet Jan, Binance’s head of exchange and trading, said the move is 'a clear sign of how the convergence of crypto and traditional assets will surface new opportunities.'