In a significant development, Ethena Labs has partnered with Digital Asset Prime Brokerage Falconx to enhance the institutional adoption of its synthetic dollar, Usde. This collaboration aims to provide seamless access to Usde for institutions, further expanding its reach in the market.
The partnership between Ethena Labs and Falconx is a strategic move to promote the adoption of Usde among institutions. Falconx has added support for the stablecoin, including spot trade, derivatives, and custody, making it more accessible to institutional customers.
Key Partnership Details
The integration of Usde on Falconx enables institutional customers to access over-the-counter liquidity for the stablecoin, which currently holds around $12.5 billion of the $297 billion stablecoin market capitalization. This places Usde as the third-largest stablecoin, after Tether (USDT) and USDC (USDC), which hold $168 billion and $72.5 billion, respectively.
In addition to OTC liquidity access, authorized institutional customers can also use Usde on Falconx as collateral for certain credit and derivatives transactions. This feature is expected to increase the appeal of Usde among institutions, providing them with more flexible and efficient ways to manage their assets.
Unlocking Capital Efficiency
Falconx hopes to create higher capital efficiency with this integration, expanding institutional access to Usde’s Delta-Neutral-Base strategy. By decreasing the stablecoin’s reliance on the United States, users can tap into the portable yield of decentralized financing and traditional financial ecosystems, generating earnings through staking, lending, and other strategies available to DeFi participants.
The platform will also expand market liquidity for the Usde stablecoin and the native Ethena token, Ena, via selected channels, including bilateral trade channels and central and decentralized exchanges. This move has the potential to improve Ethena’s DeFi ecosystem, which currently has $14 billion in total value locked.
One of the notable integrations of Usde by Ethena Labs includes a collaboration with the Ton Foundation, aimed at increasing the adoption of the stablecoin throughout the Telegram ecosystem. This partnership, announced in May, demonstrates Ethena Labs’ commitment to expanding the reach of Usde and promoting its use cases.
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