- Ethena Foundation launches StablecoinX to buy up ENA tokens.
- StablecoinX will merge with TLGY Acquisition Corp. and plans to trade on Nasdaq under the ticker USDE.
- The company has raised $360 million for its initial ENA purchases.
- Investors include Galaxy Digital, Pantera Capital, and Haun Ventures.
- StablecoinX must get approval from the Ethena Foundation before moving or selling tokens.
The Ethena Foundation announced the launch of StablecoinX on Monday, a new company designed to purchase large quantities of ENA tokens. StablecoinX plans to merge with TLGY Acquisition Corp. and aims to be listed on the Nasdaq stock exchange with the ticker symbol USDE.
So far, StablecoinX has raised $360 million to fund these token purchases. According to an official announcement, the funding comes from selling company shares, with major support from crypto-focused firms like Galaxy Digital, Pantera Capital, and Haun Ventures.
Guy Young, co-founder of the Ethena Foundation, said this strategy connects with two fast-growing trends: crypto treasury management and stablecoins. “It was obvious to us that the demand for issuers of digital dollars or stablecoins was obviously far in excess of the supply of different ways that investors could get access,” Young told DL News.
StablecoinX sold $100 million in shares directly for locked ENA tokens. The company will spend $260 million in cash over six weeks to buy more locked ENA tokens from the Ethena Foundation. The foundation will then use these funds to purchase ENA tokens available on the open market, also known as spot tokens.
StablecoinX is required to get consent from the Ethena Foundation before making decisions about selling, lending, or allocating its ENA tokens. According to Young, this setup means the company holds onto the tokens with no short-term plans to sell them. “It’s a cool outcome where you can get something that looks like a permanent capital vehicle, which is really just sucking up and absorbing tokens with no real intention to sell it going forward,” Young said.
Recently, the price of the ENA token increased by over 50% in the past week. This move follows a trend where companies backing digital stablecoins are attracting significant investor interest after public listings.
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