The Ethena Foundation is embarking on an exciting venture into the public markets with the establishment of StablecoinX Inc, a treasury firm focused on stablecoins. In a recent statement on July 21, it was revealed that the company will be going public through a merger with TLGY Acquisition Corp. As part of this strategic move, StablecoinX plans to allocate $360 million towards the buyback and accumulation of ENA, the native token of Ethena.
Following this announcement, the value of ENA surged by 8% to reach $0.5437, marking its highest point since January. StablecoinX is set to be listed on Nasdaq under the ticker symbol USDE, with a commitment to operating infrastructure within the ENA ecosystem, including validator services and staking tools.
The funding round for this initiative includes a $60 million investment from the Ethena Foundation, alongside contributions from prominent crypto investors such as Dragonfly, Pantera Capital, Galaxy Digital, Wintermute, and Polychain Capital. Guy Young, the founder of Ethena Labs, emphasized the significance of this deal, stating that the launch of StablecoinX will provide equity investors with a unique opportunity to engage with the rapidly growing digital dollar trend.
In tandem with this development, there has been a surge of interest in Ethena’s synthetic dollar, USDe. Recent data from Entropy Advisors via Dune Analytics indicates that USDe experienced its second-largest weekly issuance to date, generating close to $698 million worth of tokens. Notably, on July 14 alone, the net minting of USDe reached $267 million, followed by $160 million on each of the subsequent two days.
With this latest influx of supply, USDe’s total circulation has surpassed $6 billion tokens, reaching its highest level since February. This positions USDe as the third-largest stablecoin in the crypto market, following behind Tether’s USDT and Circle’s USDC. The growing demand for digital dollars underscores the importance of regulatory clarity in this space.
President Donald Trump recently signed the GENIUS Act, which brings stablecoin issuers under the direct oversight of the US Federal Reserve. This legislation mandates full asset backing with highly liquid instruments like cash or Treasury bills, while also setting clear compliance and redemption standards. As the digital dollar trend continues to gain momentum, the future of stablecoins appears increasingly promising in the evolving landscape of finance.