Ethena Brings Basis Trading to Stock Market with Tokenized U.S. Stocks

Ethena, a financial protocol, has announced that it will incorporate tokenized U.S. stocks into its basis trading strategy for USDe's synthetic dollar. This move is seen as a significant expansion of the funding mechanism since its inception.

According to founder Guy Young, 'This is the most significant expansion of USDe's funding mechanism since its inception.'

The protocol's basis trading can now operate in both crypto and equity markets. In the past, it only worked with crypto perpetual futures, holding spot BTC/ETH while shorting corresponding perpetual contracts.

With this new strategy, Ethena aims to diversify its yield sources and reduce USDe's dependence on crypto market cycles.