Ethena Stablecoin Backed by Tokenized Stocks

Ethena Labs has introduced a significant change to its USDe stablecoin by backing part of it with tokenized stocks, specifically Tesla and Nvidia shares. This move allows the company to generate yield through derivatives in addition to traditional methods.

The new funding mechanism uses Binance's bStocks, which are tokenized shares that can be converted into the underlying securities. Ethena shortens equity perpetual futures against these tokenized stocks to cancel out price risk.

This approach is similar to how USDe was originally built, but now targets a different asset class. Founder Guy Young calls it the 'biggest change' since the token's launch.

USDe's market value has grown to approximately $4.9 billion, and the addition of equities to its backing could potentially tap into the global market for real-world assets, which is worth over $150 trillion.