M2 Capital, the investment arm of UAE-based M2 Holdings, has made a $20 million investment in Ethena’s ENA governance token, marking a significant bet on the Ethereum-based synthetic dollar protocol.
Ethena is designed to issue price-stable assets like USDe, backed by crypto collateral and delta-neutral hedging strategies, while also offering sUSDe, a yield-bearing version that currently delivers a 6% annual percentage yield.
Despite a decline from 19% in 2024, the project continues to attract strong user adoption, with over 811,000 users across 24 blockchains. Ethena’s ecosystem has locked nearly $14.5 billion in assets and generated over $666 million in fees, according to DefiLlama.
M2’s integration plans include offering Ethena products via its affiliate, M2 Global Wealth Limited, aligning with its broader exposure to digital assets in custody, investment, and wealth management.
The move adds to M2’s strategic bets on the crypto sector, following earlier investments in the Sui Foundation and Nasdaq-listed SUI Group Holdings.
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