Ethena Labs’ USDe Expands Reach with Bybit Integration

• Through its USDe integration, Bybit enables users to perform activities involving crypto stablecoin minting.
• USDe secures institutional support as MEXC invests $20 million and creates a $1 million reward program for the yield-bearing stablecoin.
• Ethena Labs builds iUSDe which serves institutional purposes through regulated functionality with a yield range from 10-20%.

Ethena Labs extends its business growth in stablecoin sectors to provide better access for its synthetic dollar USDe. Bybit introduced USDe minting redemption and earning features into its platform to enhance user accessibility of its exchange services. The exchange platform provides users with integrated features that let them make USDe transactions through a seamless user experience and increased system liquidity.

USDe Gains Exposure to Bybit’s Large User Base

Bybit’s announcement highlighted the exchange’s substantial reserves, with over $3.5 billion in USDT and USDC. The new feature enables seamless conversion between USDe and other stablecoins at fixed costs. Ethena Labs emphasized that this addition enhances liquidity and capital efficiency while allowing Bybit users to earn rewards for holding USDe or using it as margin collateral in derivatives trading.

Beyond its Bybit partnership, Ethena Labs’ USDe has been gaining recognition across the industry. Last month, cryptocurrency exchange MEXC allocated $20 million to USDe and $16 million to Ethena Labs, aiming to support stablecoin adoption. MEXC also launched a $1 million reward campaign to encourage trading and staking, underscoring growing confidence in USDe’s potential.

USDe’s Rising Market Capitalization

USDe’s circulating supply has surged to nearly $5.4 billion, securing its position as the third-largest stablecoin. This growth is fueled by increasing institutional interest and its unique yield-bearing model. Ethena Labs offers USDe holders a 9% yield, making it an attractive option for investors seeking stable returns amid market volatility.

Ethena Labs is also developing iUSDe, a stablecoin designed for traditional finance institutions. Unlike USDe, iUSDe incorporates transfer restrictions to ensure regulatory compliance. Built on the same delta-neutral stability mechanism as USDe, it provides institutional investors with access to crypto yields without direct blockchain exposure. Offering yields between 10-20%, iUSDe serves as a savings instrument tailored for regulated financial markets.

The increasing popularity of yield-generating stablecoins is reshaping the market. Maelstrom’s chief investment officer, Arthur Hayes, has increased his firm’s exposure to USDe, citing its potential as a hedge against volatility. Regulatory bodies are also acknowledging this trend. In February, the SEC approved the first yield-bearing stablecoin security, YLDS, marking a pivotal shift in stablecoin regulation.