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    M2 Capital Allocates $20 Million to Ethena as Total Value Locked Nears $15 Billion

    Ethan CarterBy No Comments2 Mins Read
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    M2 Capital, part of the UAE-based M2 Holdings, has invested $20 million in ENA, the governance token for Ethena, a synthetic dollar protocol built on Ethereum.

    M2 Holdings, a conglomerate with interests in digital assets including custody, investment, and wealth management, plans to incorporate Ethena (ENA) products into client offerings through M2 Global Wealth Limited, according to an announcement made on Thursday.

    “M2’s investment in Ethena signifies another key milestone for the Middle East’s advanced digital asset investors,” stated Kim Wong, managing director and head of treasury at M2 Holdings.

    Ethena adds to M2’s expanding portfolio of strategic investments, which includes earlier backing of Sui (SUI) Foundation and support for Nasdaq-listed SUI Group Holdings via a private investment in public equity (PIPE) deal.

    Related: ASIC eases licensing rules for stablecoin distributors in Australia

    Ethena’s TVL nears $15 billion

    The news coincides with Ethena’s total value locked (TVL) reaching nearly $14.5 billion, according to data from DefiLlama. Over the past year, the protocol has generated $666.82 million in fees, with $32.32 million in revenue and earnings.

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    Ethena TVL reaches $14.5 billion. Source: DefiLlama

    Ethena’s architecture merges crypto-backed collateral with delta-neutral hedging strategies to provide a price-stable stablecoin (USDe) and a yield-generating alternative (sUSDe) for its users.

    According to its website, Ethena’s yield-bearing asset sUSDe currently offers an annual percentage yield (APY) of 6%, down from an average of 19% in 2024. The initiative has garnered over 811,000 users across 24 blockchain networks.

    Cointelegraph reached out to M2 Holdings for comment but had not received a reply by the time of publication.

    Related: Colombians can soon save in stablecoins with new MoneyGram app

    YZi Labs increases investment in Ethena

    Recently, YZi Labs, an investment firm connected to Changpeng “CZ” Zhao, has bolstered its investment in Ethena to facilitate the stablecoin’s expansion. This action aims to enhance USDe on BNB Chain and accelerate the development of USDtb, a treasury-backed stablecoin, and Converge, Ethena’s institutional settlement layer for tokenized real-world assets.