Ether.fi Launches Stablecoin with Ethena Managing Reserves

Ether.fi, a platform that began as an Ethereum liquid staking protocol and has expanded into a crypto card business, is launching its own stablecoin called ether.fi USD. This new token is built on Ethena Whitelabel, a stablecoin-as-a-service platform operated by the issuer of USDe. The partnership was announced on X earlier this week, with Ethena handling the reserves, minting, redemptions, and compliance for the stablecoin.

The primary goal of ether.fi USD is to cater to the over $300 million in stablecoin deposits already on the ether.fi platform. The stablecoin will be integrated into all of ether.fi’s products, making it native to their ecosystem. However, details about the launch date, supported blockchains, and backing assets for the token were not disclosed.

Ethena linked the stablecoin launch to ether.fi’s Cash card, which debuted in 2024. The card has processed nearly $1 billion in cumulative spending and boasts over 100,000 active users. Ethena highlighted that the best stablecoin neobanks will aim to control the entire stack, earning from idle deposit balances alongside their broader product offerings.

Ether.fi is the latest project to issue a branded stablecoin through Ethena Whitelabel. Other collaborations include Solana trading platform Jupiter with JupUSD and MegaETH’s USDm. Ethena’s Whitelabel site also lists Sui’s suiUSDe, indicating a growing list of branded stablecoins under Ethena’s ecosystem.