StablecoinX Starts Nasdaq Trading as USDE to Support Ethena

StablecoinX completed its merger with TLGY Acquisition Corp and began trading on Nasdaq on Friday under the ticker USDE. The company is the first public firm focused on stablecoin infrastructure for the Ethena ecosystem.

StablecoinX plans to run decentralized verifier nodes and provide software tools designed to preserve and expand use of Ethena’s yield-bearing stablecoin, USDe.

USDe maintains its $1 peg through a derivatives-based, delta-neutral strategy. It is backed by crypto collateral in Bitcoin and Ether combined with short futures positions on those assets; the long and short positions are intended to offset each other to reduce price swings. That differs from fiat-backed stablecoins, which hold dollar reserves.

The derivatives approach can perform in stable markets but is exposed when futures funding rates turn negative. USDe’s market capitalization has fallen about 70% from its October peak to roughly $4.5 billion, and circulating supply has declined since the prior market high, placing USDe sixth among stablecoins by market value.

StablecoinX’s balance sheet includes about 3 billion Ethena governance tokens (ENA), roughly 20% of the token’s total supply, which the company values at about $275 million. The firm said it raised $360 million to purchase additional ENA. ENA trades near $0.08, about 94% below its April all-time high.

The company describes three business lines: a decentralized verifier node that acts as a cross-chain message verifier for Ethena, a middleware software stack called Stablecoin Harness, and distribution services that are under development. The company says the units are intended to work together to support the Ethena network and expand USDe’s reach.

The Nasdaq listing comes as the crypto market has contracted over the past year. Shares of pre-merger TLGY declined on over-the-counter trading Thursday, closing at $9.40, down about 6.9% from the prior session.

Edward Chen, StablecoinX’s chief executive and chairman, said: “We believe Ethena has emerged as one of the most important platforms powering the next generation of digital dollars.” Company filings indicate StablecoinX intends to use its public status to develop Ethena-focused infrastructure, manage token holdings and build commercial distribution for USDe. The company said its future performance will depend on market conditions for yield-bearing stablecoins and the behavior of ENA and USDe in futures markets.