Ethena Pay Brings Stablecoin USDe to Neobanking with Rewards Paid in AVAX

Ethena Pay, a neobank app built on the Avalanche blockchain and using its own stablecoin, USDe, has launched in 49 countries. The app offers users the ability to receive fiat through IBAN details or crypto into their wallet, with funds arriving as USDe, and send funds out to external bank accounts where withdrawals settle in the recipient's local currency.

The service also allows for transfers between Ethena Pay users by username or tag with no transfer fee. Users can earn up to 10% APY on balances and receive rewards paid in AVAX, the native cryptocurrency of the Avalanche network, rather than dollars.

While this unique approach gives Ethena more control over its product and user experience, it also raises questions about the trustworthiness of USDe as a stablecoin and the potential risks associated with holding it as a savings balance or using it for rewards.

The launch has been met with excitement in the crypto community, with ENA trading up 6.7% over 24 hours following the announcement.