Stablecoin infrastructure company StablecoinX has completed its merger with publicly traded special purpose acquisition company TLGY Acquisition Corp, allowing it to begin trading on the Nasdaq on Friday.
StablecoinX is the first public stablecoin infrastructure company focused on supporting the Ethena ecosystem through decentralized validator nodes and software infrastructure, trading under the symbol “USDE.” According to in a statement Thursday.
“We believe Ethena has emerged as one of the most important platforms powering the next generation of digital dollars,” said Edward Chen, CEO and Chairman of StablecoinX.
The Nasdaq debut is a big bet that stablecoins are becoming the plumbing of global finance, and comes despite a growing crypto bear market and despite Etena’s stablecoin market share being relatively small at 1.4% compared to those offered by competitors such as Tether and Circle.
Ethena’s $USDe is a high-yielding synthetic dollar-pegged stablecoin. USDT (USDT) $USDC ($USDC), backed by real dollars, $USDe (USDE) maintains a $1 peg through a derivatives strategy.
This is backed by cryptocurrency collateral in Bitcoin and Ether, as well as future short positions in those same assets, allowing long and short positions to offset price fluctuations, helping to maintain its value at around $1.
While Ethena’s delta-neutral strategy works well in normal markets, it becomes vulnerable during periods when forward funding rates are negative.
$USDe supply decreases
The amount of stablecoins in circulation has increased in recent years, $USDe Its market capitalization has fallen 70% since its peak in October and is now around $4.5 billion, making it the sixth-largest stablecoin.
$USDe Supply has been decreasing since the peak of the bull market. Source: CoinGecko
StablecoinX’s treasury also stores approximately 3 billion Ethena governance tokens ($this), or about 20% of the total supply, and its value is equivalent to about $275 million. company announced $360 million in financing for acquisition $this on sunday.
However, the asset is currently trading at $0.08, down 94% from its all-time high in April 2024.
The company has three lines of business: a decentralized verification node (DVN) that acts as a cross-chain message validator for the Ethena ecosystem, a middleware software stack called “Stablecoin Harness,” and a distribution service currently in development.
The company says that while the three businesses are mutually reinforcing, the broader cryptocurrencies are mutually reinforcing. bear market The company’s debut on the Nasdaq comes from a difficult background.
Crypto SPACs and crypto bonds have struggled this year as the overall market has fallen 52%, $2.3 trillion has exited the market since October, and cryptocurrencies have fallen out of favor with investors.
Pre-merger TLGY fell 6.93% on the over-the-counter market Thursday, closing the day at $9.40. According to Google Finance data.
