StablecoinX Secures $530M PIPE to Expand Ethena ENA Treasury to $890M

StablecoinX and TLGY Acquisition Secure $530 Million in PIPE Financing to Expand Ethena Treasury

StablecoinX and TLGY Acquisition have successfully raised an additional $530 million through a private investment in public equity (PIPE) transaction. This brings total capital commitments to $890 million ahead of their planned merger and Nasdaq listing. The combined company will be renamed StablecoinX Inc. and is positioned to hold more than 3 billion ENA tokens, the native asset of the Ethena protocol.

Strengthening the Ethena Ecosystem

StablecoinX Inc. aims to become the first dedicated treasury business for the Ethena ecosystem, which issues the USDe and USDtb stablecoins. The PIPE deal was priced at $10 per share, with part of the funds allocated to purchasing discounted locked ENA from a foundation subsidiary. New investors joining the financing round include YZi Labs, Brevan Howard, Susquehanna Crypto, and IMC Trading, alongside returning investors such as Dragonfly, ParaFi Capital, Maven11, Kingsway, Mirana, and Haun Ventures.

Marc Piano, director at the Ethena Foundation, stated that the additional funding would enhance ecosystem resilience, deepen ENA liquidity, and support the sustainable growth of Ethena’s stablecoins and future products.

Background: Merger and Prior Financing

This announcement follows a July 21 disclosure detailing the proposed merger between TLGY and StablecoinX, an initial $360 million PIPE financing, and a $260 million ENA token buyback program. The expanded financing reflects growing investor confidence in Ethena’s model and the combined company’s strategy.

Ethena’s Rapid Stablecoin Growth

Ethena Labs launched the Ethena protocol in early 2024, offering synthetic dollar stablecoins USDe and USDtb. Unlike traditional stablecoins backed by fiat reserves, Ethena employs a delta-neutral hedging strategy to maintain its peg. The Switzerland-based Ethena Foundation governs the protocol and oversees ecosystem development.

According to a September Binance Research report, USDe became the fastest stablecoin to reach $10 billion in supply, hitting $12.6 billion in less than ten months. This growth outpaces established stablecoins like Tether’s USDT, which took approximately 88 months, and Circle’s USDC, which took 38 months to reach similar milestones.

Token Terminal data indicates that USDe’s supply increased by 31% in the previous month, making Ethena the third-largest stablecoin issuer behind Tether and Circle. The protocol has generated over $500 million in cumulative revenue as of August, with recent weekly earnings surpassing $13 million.

Binance Research attributes this success to rising demand for USDe and the effectiveness of Ethena’s hedging model, which captures yield from crypto markets to sustain the stablecoin’s peg. Additionally, Ethena is developing its fiat-backed stablecoin USDtb with a pathway to regulatory compliance under the US GENIUS Act, signed into law on July 18, 2023.