Ethena expands its USDe reserve strategy to include Binance’s tokenized stocks and stock perpetual contracts.

Ethena is expanding the basis trading strategy underpinning its USDe stablecoin, adding Binance’s bStocks tokenized U.S. equities as spot collateral assets and using Binance’s stock perpetual contracts to hedge related exposures. Ethena’s Risk Committee has previously approved the inclusion of tokenized stock basis trading in USDe’s allocation strategy. Previously, Ethena built USDe’s delta-neutral yield strategy primarily by holding crypto asset spot positions and using derivatives for hedging. Data shows that USDe’s current circulating supply stands at around $4.9 billion. Ethena noted that Binance’s stock perpetual contracts currently have an open interest of over $2.9 billion, with a monthly compound growth rate of 105% year-to-date, and an average annualized stock basis yield of 3.56% over the past six months. Ethena founder Guy Young stated that this is the most significant expansion to USDe’s funding mechanism since its launch. Ethena anticipates that as more traditional financial assets are tokenized on-chain, the stock perpetual contract market will likely see opportunities that far exceed those of the crypto perpetual contract market in the future.