MEXC Ventures Invests $36M in Ethena’s USDE as Stablecoin Demand Continues to Surge

MEXC Ventures, the funding arm of crypto trade MEXC, is investing a complete of $36 million into Ethena and its USDe stablecoin, in accordance to a press launch.

The agency is making a strategic funding of $16 million in Ethena and acquired $20 million in USDe stablecoin to increase the adoption of artificial {dollars} in decentralized finance (DeFi) and provide another to fiat-backed stablecoins, the assertion mentioned.

The transfer comes after Ethena, the developer of USDe, raised $100 million final 12 months, which was backed by Franklin Templeton and Fidelity Investments-affiliated F-Prime Capital, amongst others.

Known as an artificial stablecoin, USDe is in contrast to conventional stablecoins like USDT and USDC in that it’s not backed 1:1 by fiat property. Instead, it maintains its peg by collateralizing stablecoins and taking futures positions with giant open curiosity.

USDe’s market cap has risen to practically $6 billion, whereas extra conventional stablecoins presently have market caps above $50 billion, in accordance to CoinMarketCap knowledge. The complete market cap for stablecoins is presently above $200 billion.

MEXC’s backing comes as competitors in the stablecoin market intensifies, with tasks in search of modern fashions to guarantee stability and accessibility.

“As demand for investment in bitcoin and other digital assets continues to rise, stablecoins are set to attract even greater investment,” mentioned Tracy Jin, COO of MEXC.

“MEXC sees Ethena as a key player in the development of diverse stablecoins that will drive the crypto industry forward, supporting broader adoption and providing users with more stable and efficient financial solutions.”

Read extra: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance