Ethena, developer of Synthetic Stablecoin USDE, raised $100 million to raise similar tokens targeting traditional financial (Tradfi) institutions, Bloomberg reported Monday.
The funding round was completed in December and was completed among supporters by F-Prime Capital, related to Franklin Templeton and Fidelity Investments, the report added, citing someone familiar with the issue.
Founder Guy Young said in a blog post in January that Ethena has plans to roll out Iusde, a token tailored to regulated financial institutions.
USDE, known as synthetic stubcoin, is different from other tokens. This differs in that it is not supported 1:1 by Fiat assets. Instead, they will maintain that peg by collaborating with a cooperative stubcoin and gaining future status.
USDE's market capitalization jumped to around $6 billion this month, making it the third largest Stablecoin after Tether's USDT and Circle's USDC.
Some observers view USDE as a potentially secure heaven during a period of greater volatility in the broader crypto market. Maelstrom's Chief Investment Officer Arthur Hayes said the Digital Asset Fund has raised its USDE exposure to “recorded levels.”
“We'll put in a large amount of dry powder ready to buy dips in Bitcoin,” added Hayes, an investor and advisor at Ecena.
Esena did not immediately respond to Coindscan's request for comment on the $100 million funding round.
Read more: Peter Thiel-backed Plasma raises $20 million to develop a Bitcoin-based network for Stablecoin
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