Coinbase Backs Ethena Ahead of Savings Product Launch

Coinbase Ventures, the investment arm of crypto exchange Coinbase, has made a strategic move by investing in Ethena, the protocol behind the synthetic dollar token USDe.

The investment, which involves buying ENA tokens on the open market, comes as the companies prepare to launch an on-chain savings product for Coinbase's 100 million users next week.

USDe is a synthetic dollar that aims to track $1 without cash or Treasury reserves, using spot crypto collateral hedged with short perpetual futures. Coinbase has already partnered with Ethena as its primary custodian, wallet provider, and perpetuals venue.