Ethena Diversifies Basis Trading Strategy with Tokenized Equities

Ethena has taken its basis trading strategy beyond crypto markets by adding tokenized US equities and equity perpetual futures to the mix.

The move follows approval from Ethena's Risk Committee for a framework allowing tokenized equity basis trades, which will be used in part of USDe's backing strategy.

bStocks on Binance will provide tokenized spot collateral, while corresponding equity perpetual futures will serve as the hedge.

Ethena plans to pair the tokenized assets with short positions in Binance equity perpetual futures, allowing gains or losses in the spot position to be offset by movements in the derivatives position.