Expanding its USDe base trade to Binance stock players means that Ethena, in theory, opens itself to a market of more than $150 billion in real-world assets.
Ethena is partnering with Binance to expand the core trading supporting USDe beyond crypto and into the much broader tokenized equity market.
What’s the scoop?
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Core Commerce Moves to TradFi: Ethena will begin supporting USDe through delta-neutral equity transactions, using tokenized and perpetual shares to collect funding payments. In theory, this structure expands Ethena’s underlying addressable market from approximately $2.5 billion in crypto assets to over $150 billion in real-world assets.
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Why Binance: Binance is equipped with both bStocks (tokenized cash collateral) and USDT-denominated stocks, allowing Ethena to use a single venue for both sides of its trades. Additionally, eligible delta-neutral accounts like Ethena also receive lower priority for Binance’s automatic deleveraging system, reducing the risk of its strategy being forcibly closed in the event of market stress.
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Where it can break: Stock trading introduces a major problem: US stocks close while their tokenized and perpetual versions continue to trade. The Ethena Risk Committee calls this strategy “the deepest structural risk”since the criminal may wander away from the underlying action outside of business hours, potentially weakening the cover.
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Ethena’s Elk: The expansion comes as ENA has climbed ~60% over the past month, from ~$0.14 to ~$0.23. USDe’s supply is around $4.9 billion, putting it closer to the first trigger for the recently approved fee change: a 14-day average supply of $7.5 billion, which is when Ethena will begin direct part of the protocol’s revenues towards ENA redemptions.
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