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    M2 Capital Allocates $20M to Ethena as Total Value Locked Nears $15B

    Ethan CarterBy No Comments2 Mins Read
    M2 Capital Allocates $20M to Ethena as Total Value Locked Nears $15B

    M2 Capital, the investment division of M2 Holdings based in the UAE, has invested $20 million in ENA, the governance token for Ethena, a synthetic dollar protocol built on Ethereum that is crypto-native.

    M2 Holdings, a conglomerate with interests in digital assets across custody, investment, and wealth management, plans to incorporate Ethena (ENA) products into its client offerings via its affiliate, M2 Global Wealth Limited, according to a Thursday statement.

    “The investment by M2 in Ethena signifies a vital advancement for the Middle East’s leading 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 also includes earlier funding in the Sui (SUI) Foundation and support for Nasdaq-listed SUI Group Holdings through a private investment in public equity (PIPE) arrangement.

    Related: ASIC eases licensing rules for stablecoin distributors in Australia

    Ethena’s TVL nears $15 billion

    The announcement arrives as Ethena’s total value locked (TVL) has surged to nearly $14.5 billion, according to data from DefiLlama. Over the last year, the protocol has generated $666.82 million in fees, with a revenue of $32.32 million.

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    Ethena TVL reaches $14.5 billion. Source: DefiLlama

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

    As stated on its website, Ethena’s yield-bearing asset sUSDe offers an annual percentage yield (APY) of 6%, a decrease from its 2024 average of 19%. The initiative has attracted over 811,000 users across 24 blockchain networks.

    Cointelegraph reached out to M2 Holdings for a statement but had not received a reply by press time.

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

    YZi Labs boosts investment in Ethena

    Last week, the investment firm YZi Labs, associated with Changpeng “CZ” Zhao, increased its investment in Ethena to facilitate the stablecoin’s growth. This move will aid in the scaling of USDe on BNB Chain and expedite the development of USDtb, a treasury-backed stablecoin, as well as Converge, Ethena’s institutional settlement layer for tokenized real-world assets.