Institutional backing grows for synthetic dollar protocol built on Ethereum
M2 Capital, the investment arm of UAE-based M2 Holdings, has invested $20 million in Ethena’s ENA governance token, underscoring rising institutional interest in the synthetic dollar protocol. The move comes as Ethena’s total value locked (TVL) approaches $15 billion, solidifying its position as one of the fastest-growing projects in decentralized finance.
M2 integrates Ethena into client offerings
M2 Holdings, which operates across custody, investment, and wealth management, confirmed plans to integrate Ethena products into client portfolios through its affiliate, M2 Global Wealth Limited.
“M2’s investment in Ethena marks another important step forward for the Middle East’s most sophisticated digital asset investors,” said Kim Wong, managing director and head of treasury at M2 Holdings.
The firm has previously backed blockchain initiatives such as the Sui Foundation and SUI Group Holdings, highlighting a broader strategy of positioning itself at the forefront of next-generation financial infrastructure.
Ethena’s momentum has been fueled by the rapid adoption of its synthetic dollar (USDe) and yield-bearing version, sUSDe. According to DefiLlama data, the protocol has generated $666.82 million in fees over the past year, with $32.32 million in revenue and earnings.
Currently, sUSDe offers an annual percentage yield (APY) of 6%, a decline from its 2024 average of 19%. Even with lower yields, the platform has attracted over 811,000 users across 24 blockchains, reflecting demand for stable and transparent yield products.
Strategic expansion with global partners
Ethena’s design combines crypto-backed collateral with delta-neutral hedging strategies to maintain stability while generating yield. Industry observers note that such mechanisms are critical for bridging DeFi with traditional finance.
In parallel, YZi Labs, an investment firm linked to Changpeng “CZ” Zhao, recently increased its stake in Ethena. The additional support is expected to scale USDe on BNB Chain and accelerate the launch of USDtb, a treasury-backed stablecoin, and Converge, an institutional settlement layer for tokenized real-world assets.
With institutional capital flowing in and partnerships expanding, Ethena is positioning itself as a cornerstone of the evolving stablecoin and DeFi ecosystem.
Disclaimer
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