Synthetic stablecoin ecosystem expands as USDe becomes third-largest globally
Ethena Labs has announced a partnership with institutional trading firm Flowdesk to strengthen access and liquidity for its stablecoins USDe and USDtb, marking another step in the protocol’s rapid rise. The move comes as USDe’s market capitalization surpasses $14 billion, securing its place as the world’s third-largest stablecoin behind USDT and USDC.
Flowdesk, whose client base spans hedge funds, exchanges, and token issuers, will provide trading and reward program infrastructure for both Ethena stablecoins. The collaboration is designed to improve accessibility and deepen liquidity across markets.
Two models of stability: USDe and USDtb
- USDe is Ethena’s synthetic dollar, backed primarily by crypto assets and maintained through a delta-neutral hedging strategy that stabilizes its peg to $1.
- USDtb, in contrast, is backed by real-world assets, including BlackRock’s tokenized money market fund BUIDL and established stablecoins, aligning its profile more closely with traditional fiat-backed tokens such as USDC and USDT.
This dual approach allows Ethena to cater to both DeFi-native users seeking yield and institutions preferring asset-backed assurances.
USDe’s supply has grown 21% in the past month, driven by demand for its yield-generation model, which lets holders earn returns while enhancing collateral efficiency across decentralized finance platforms. Ethena’s cumulative revenue surpassed $500 million in August, bringing the protocol closer to activating its fee-switch mechanism, which would distribute revenue to ENA governance token holders.
Recent corporate interest has further boosted momentum. Public holding company Mega Matrix filed a $2 billion shelf registration with flexibility to acquire ENA, while StablecoinX and TLGY Acquisition secured $890 million in funding to pursue digital asset acquisitions, including Ethena’s governance token.
Risks and market outlook
Despite its rapid rise, analysts caution that synthetic stablecoins face unique risks, including reliance on funding rate stability, counterparty exposure, and derivatives market volatility. Extended periods of negative funding rates could challenge USDe’s resilience.
For now, however, demand continues to climb, positioning Ethena as one of the fastest-growing players in the stablecoin sector.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.