Quick take:
- The move is aimed at promoting broader use and adoption of the USDe token within the crypto ecosystem.
- Synthetic dollars are not backed 1:1 by fiat but rather obtain value by collateralising other stablecoins.
- The announcement comes following Ethena’s $100 million funding to fund a new synthetic dollar that targets traditional financial institutions.
MEXC Ventures, the venture arm of the crypto exchange platform MEXC, has invested $36 million in Ethen and the USDe. According to the press release on Wednesday, the firm purchased $20 million in USDe, Ethena’s synthetic dollar with an extra $16 million going in as investment in the decentralised finance project.
MEXC describes its USDe purchase as a move aimed at promoting broader use and adoption of the token within the crypto ecosystem.
Unlike traditional stablecoins, synthetic dollars are not backed 1:1 by fiat but rather obtain value by collateralising other stablecoins.
Commenting on the announcement, Tracy Jin, COO of MEXC expressed MEXC’s commitment 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 to rise, 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,” said Jin.
This announcement comes just weeks after Ethena disclosed a $100 million funding round backed by Franklin Templeton and Fidelity Investments’ venture arm F-Prime Capital. Though announced in February, the round closed in December last year and will be used to fund a new synthetic dollar that targets traditional financial institutions.
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