TheBlock
Ethena Labs launched the beta of Ethena Pay on Wednesday, a self-custodial money app built exclusively on Avalanche and vertically integrated with the issuer of its USDe synthetic dollar. Standard users earn 5% APY on balances up to $5,000, while Pro and VIP tiers push the rate to 6% on balances up to $15,000 and $50,000, with USDe's backing portfolio funding the savings yield. The app also ships a cashback card paying 4% to 5% in AVAX and up to 10% at merchants including Uber, Spotify and Claude, rolling out in 48 countries across Latin America, Africa, Asia and the Middle East.
Why it matters
Ethena founder Guy Young called it the first neobanking app vertically integrated with a stablecoin issuer, rather than a wallet wrapped around USDC or USDT. Funds arrive as USDe whether sent through IBAN or on-chain, then settle in local fiat on withdrawal, collapsing the typical stablecoin stack into a single issuer. With USDe supply at about $4 billion, down from a peak near $15 billion in September 2025, the consumer push doubles as a demand-revival bid for a token that has lost two-thirds of its circulating float.
Market impact
The Avalanche-only build deepens AVAX's stablecoin footprint, with cashback paid directly in the chain's native token. Iron, the stablecoin infrastructure firm MoonPay acquired in 2025, runs backend support, putting MoonPay's rails behind the launch. Rollout skips the United States and European Union initially, with Canada, Taiwan, South Korea and others set to follow. Ethena's European regulatory overhang remains live: German regulator BaFin ordered Ethena GmbH to wind down its USDe business in June 2025 after the company withdrew its MiCA application.
Frequently asked questions
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What is Ethena Pay and how is it different from a USDC wallet?
Ethena Pay is a self-custodial money app built on Avalanche by Ethena Labs, the issuer of the USDe synthetic dollar. Founder Guy Young called it the first neobank vertically integrated with a stablecoin issuer, with balances held as USDe rather than USDC or USDT.
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What yield does Ethena Pay offer and where does the yield come from?
Standard users earn 5% APY on balances up to $5,000. Pro and VIP tiers earn 6% APY on balances up to $15,000 and $50,000 respectively. Young said USDe's backing portfolio funds the savings yield; the source of the remaining reward funding was not disclosed.
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Where is Ethena Pay available at launch?
The beta opens across 48 countries in stages, including Brazil, Mexico, South Africa, Kenya, the Philippines, Singapore, Japan, the UAE and Australia. The United States and European Union are excluded from the initial rollout, with Canada, Taiwan and South Korea expected to follow.
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How does the Ethena Pay cashback card work?
The card pays 4% to 5% cashback in AVAX for Standard, Pro and VIP users. Pro and VIP members can also earn 5% and 10% cashback at selected merchants including Uber, Spotify and Claude. Standard membership is free; Pro and VIP unlock by locking $2,000 or $10,000 in ENA, or by referring 10 or 50 users.
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Why did USDe supply fall and what is Ethena's regulatory situation?
USDe circulating supply is about $4 billion, down from a peak near $15 billion in September 2025. In June 2025, German regulator BaFin ordered Ethena GmbH to wind down its USDe business after the company withdrew its MiCA application, which is why the consumer launch excludes the US and EU initially.
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