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Cryptocurrency

Ethena Aims to Foster Traditional Finance Adoption via Synthetic Dollar Integration by 2025 Roadmap

Horizonstocks

Ethena Prepares to Launch Crypto-Based Product for TradFi Institutions

In a significant move, Ethena is gearing up to launch a new cryptocurrency-based product aimed at attracting traditional finance (TradFi) institutions. The blockchain platform plans to introduce the iUSDe product in February, which is built on its synthetic dollar, sUSDe.

What is iUSDe?

iUSDe introduces a ‘simple wrapper contract’ that adds transfer restrictions at the token level. According to Ethena’s 2025 roadmap published on January 3, this new product is designed to provide a more streamlined and user-friendly experience for investors. The roadmap reveals that Ethena’s primary goal for the first quarter of 2025 is to collaborate with TradFi distribution partners to make iUSDe accessible to their clients.

Target Audience

The main target audience for iUSDe includes asset managers, private credit funds, exchange-traded products, private investment trusts, and prime brokers. These institutions are expected to be attracted to the product’s yield-generating potential, which is a key differentiator from traditional dollar-based savings products.

Why is Ethena Focusing on TradFi?

Ethena’s synthetic dollar, sUSDe, has already gained significant traction among investors, with over 368,000 investors having invested over $5.85 billion in the product. The platform offers a 10% annual percentage yield (APY) to these investors, making it an attractive option for those seeking high-yield investments.

The Potential of Synthetic Dollars

A synthetic dollar could potentially disrupt TradFi markets by offering a more attractive alternative to traditional savings products. With the $190 trillion size of the fixed-income markets being the largest liquid investment class in the world, there is significant potential for demand for yield-generating dollar products like iUSDe.

Ethena’s Vision

According to Ethena’s roadmap, the next logical step for TradFi participants following exchange-traded funds (ETFs) is a dollar savings product. The futures basis is the only market large enough in crypto with the capacity for their level of demand in a dollar format. This suggests that Ethena believes its synthetic dollar has the potential to meet the needs of large institutional investors.

How Does iUSDe Generate Yield?

Ethena’s synthetic dollar generates yield via staking returns and shorting Ether (ETH) perpetual futures contracts. In an exclusive interview with Cointelegraph, Guy Young, the founder of Ethena Labs, explained how the product works.

Ethena’s Success Story

Ethena has already achieved significant success in the crypto space, becoming the second-fastest protocol to hit $100 million in revenue. It took the platform just 251 days to generate its first $100 million in revenue, outpacing other notable protocols like Pump.fun.

iUSDe’s Potential Impact

The introduction of iUSDe has the potential to revolutionize the way institutional investors approach dollar-based savings products. With its yield-generating potential and user-friendly experience, iUSDe could attract significant attention from TradFi participants and disrupt the traditional financial landscape.

What is Ethena?

Ethena is a blockchain platform that offers a synthetic dollar product called sUSDe. The platform has gained significant traction among investors, with over 368,000 investors having invested over $5.85 billion in the product.

Key Features of iUSDe

  • A ‘simple wrapper contract’ that adds transfer restrictions at the token level
  • Designed to provide a more streamlined and user-friendly experience for investors
  • Offers a 10% annual percentage yield (APY) to investors
  • Built on Ethena’s synthetic dollar, sUSDe

Target Audience for iUSDe

  • Asset managers
  • Private credit funds
  • Exchange-traded products
  • Private investment trusts
  • Prime brokers

Why is Ethena Focusing on TradFi?

Ethena believes that its synthetic dollar has the potential to meet the needs of large institutional investors. The platform’s vision is to provide a yield-generating dollar product that can compete with traditional savings products.

How Does iUSDe Generate Yield?

iUSDe generates yield via staking returns and shorting Ether (ETH) perpetual futures contracts.

Ethena’s Success Story

Ethena has already achieved significant success in the crypto space, becoming the second-fastest protocol to hit $100 million in revenue. It took the platform just 251 days to generate its first $100 million in revenue, outpacing other notable protocols like Pump.fun.

Conclusion

The introduction of iUSDe by Ethena has the potential to revolutionize the way institutional investors approach dollar-based savings products. With its yield-generating potential and user-friendly experience, iUSDe could attract significant attention from TradFi participants and disrupt the traditional financial landscape. As the crypto space continues to evolve, it will be interesting to see how iUSDe performs in the market.