Ethena Teams Up with Binance to Bolster USDe Stablecoin Collateral

Ethena, a decentralized finance (DeFi) protocol, has partnered with Binance to expand its USDe stablecoin's collateral backing. On Friday, Ethena began buying Binance's bStocks and shorting matching equity perpetuals to capture the funding paid by leveraged longs.

This move extends the basis trade into equity perpetuals, diversifying USDe's collateral and potentially boosting revenue and adoption of the stablecoin. The partnership with Binance also introduces new funding streams for Ethena.

With a market capitalization of $2.95 trillion, Binance is one of the largest cryptocurrency exchanges in the world. By partnering with it, Ethena gains access to a vast user base and a highly liquid market.