Ethena Pay Launch Ignites Avalanche-Powered Neobank Growth

Ethena Pay, a new mobile application powered by Avalanche, has launched and is gaining traction. The app combines dollar savings, global transfers, and card payments in one place, allowing users to hold balances in USDe, Ethena's synthetic dollar. Ethena Pay offers up to 6% interest on dollar savings, paid daily, alongside cashback of up to 5% on eligible card spending.

The app also features borderless money transfers, multi-currency savings accounts, and fiat onramps supporting USD, GBP, EUR, and local currencies. Ethena has introduced a feature called 'Buy Now Pay Never,' which uses savings rewards to help offset everyday expenses. However, its availability and operation may depend on the user's jurisdiction and account tier.

Ethena Pay is structured as a non-custodial service, meaning users retain control of their digital assets rather than depositing them directly with Ethena. Wallet access is secured through passkeys and biometric authentication. The app will expand access to 400 early-access users across supported regions throughout September.

The announcement sparked an ENA rally, with the token trading at $0.161 following the launch. This comes after the Ethena Foundation previously revealed measures aimed at addressing concerns over selling pressure from early investors.