MEXC Ventures Invests $36M in Ethena's USDe Synthetic Dollar

MEXC Ventures, the venture arm of the crypto exchange platform MEXC, has invested $36 million in Ethen and the USDe.

crypto exchange platform MEXC’s venture arm, has invested a total of $36 million in Ethena and its USDe stablecoin.

Of the total, $20 million will go toward purchasing USDe, the decentralised finance firm’s synthetic dollar, with an additional $16 million going in as investment in the project.

Announcing the investment on Wednesday, MEXC said the move is aimed at promoting broader use and adoption of USDe within the crypto ecosystem.

“Unlike traditional stablecoins, synthetic dollars are not backed 1:1 by fiat but rather obtain value by collateralising other stablecoins. In doing so, they can gain the properties of fiat money, such as divisibility and liquidity, in a decentralised manner.”

The firm’s COO, Tracy Jin, added: “At MEXC, we are committed to supporting the pivotal role that stablecoins play in the development of the broader cryptocurrency market.

“As demand for investment in Bitcoin and other digital assets continues from institutions, stablecoins are set to attract even greater investment. MEXC sees Ethena as a key player in the development of diverse stablecoins that will drive the crypto industry forward, supporting broader adoption and providing users with more stable and efficient financial solutions.”

The investment comes just weeks after Ethena announced a $100 million funding round that saw participation from the likes of investment firm Franklin Templeton and Fidelity Investments’ venture arm F-Prime Capital.

Though announced in February this year, the firm said the round, which was co-led by Flow Ventures and Framework Ventures, closed last December.

The funds will be used to launch a new synthetic dollar that will be tailored toward traditional financial institutions.