StablecoinX, in a business partnership with TLGY Acquisition Corp., announced it has raised $360 million to fund its Ethena (ENA) treasury strategy. The firm aims to accumulate and hold the native tokens of the Ethena protocol on its balance sheet.
Notably, Ethena, the third-largest on-chain issuer of stablecoins after Tether and Circle, stands to benefit from the institutional initiative. According to market data, the news triggered an 8% surge in ENA’s price, as investors reacted to the announcement.
How the Raised Capital Will be Used
Out of the proceeds, $260 million in cash will be used to purchase locked ENA tokens from an Ethena Foundation subsidiary. The foundation, in turn, plans to execute an initial $260 million buyback through market makers, investing approximately $5 million per day over six weeks. The remaining $100 million in discounted ENA tokens rounds out the acquisition plan.
Additionally, StablecoinX will operate validator nodes and staking infrastructure for the Ethena protocol, demonstrating its commitment to strengthening the ecosystem. The firm is also preparing for its future Nasdaq listing under the symbol USDE, which aims to support ENA liquidity and expose the token to traditional investors.
Prominent crypto investors, including Dragonfly, Ribbit Capital, Pantera, Blockchain.com, Galaxy Digital, and Wintermute, supported the funding round. Commenting on the initiative, Stablecoin’s CEO Young Cho said:
“This transaction gives public market investors transparent, well‑governed access to the Ethena ecosystem. Deploying capital to accumulate ENA at scale is a deliberate, multi‑year capital allocation strategy that will enable StablecoinX to capture the value driven by the secular surge in demand for digital dollars while compounding intrinsic value per share.”
Nations Embrace Stablecoins
Interestingly, the initiative aligns with the growing demand for stablecoins. Shanghai’s State-owned Assets Supervision and Administration Commission (SASAC) recently convened a meeting to explore stablecoin frameworks. It focused on shaping stablecoin policy and evaluating its use cases in cross-border trade, supply chain finance, and digital asset management.
Bank of America CEO Brian Moynihan confirmed that the bank is actively preparing a fully dollar-backed stablecoin, but it awaits regulatory clarity. The institution is working to align product launch timing with client demand and compliance requirements.
Meanwhile, Bank of England Governor Andrew Bailey cautioned banks against issuing private stablecoins. He warned of potential threats to monetary sovereignty and credit creation if these instruments divert money out of traditional deposit systems. He instead advocates for tokenized deposits as better alternatives.
