CoinDesk
Ethena plans to route a slice of USDe's basis trades into equity perpetual futures, where funding rates have averaged 13.9% versus 3.9% for bitcoin, according to the protocol.
Open interest in equity perps has surged tenfold since March to $6.2 billion, with funding running roughly 14% on Hyperliquid and 17.5% on Binance over the past several months. Ethena said it expects to name its first exchange partners and begin deploying capital in the coming weeks.
The pivot comes as USDe supply sits below $5 billion, down from a 2025 peak near $15 billion.
Why it matters
Equity funding was positive on 94% of days on Hyperliquid and 97% on Binance once those markets reached meaningful scale, and showed almost no correlation with bitcoin funding. Co-founder Guy Young called the natural positive skew of stocks, which tend to rise over long periods, more durable than crypto's leverage cycles, which compress or invert during bear markets.
The addressable market dwarfs crypto. Global equities were valued at $166.5 trillion in July versus roughly $2.2 trillion for crypto, though equity perpetuals are still a fraction of their crypto counterparts today. Ethena expects real-world asset perpetuals to eclipse crypto derivatives in USDe backing within 12 to 24 months.
Market impact
The expansion adds to a broader rebuild effort. Last week, Ethena announced a $1 billion FalconX facility that can deploy USDe backing into overcollateralized institutional loans. The Ethena Foundation also unveiled a major overhaul of ENA token economics, eliminating monthly VC unlocks and holding a vote on directing protocol revenues toward token buybacks.
The combined picture: a yield strategy that decouples USDe returns from crypto cycles, paired with a tighter ENA supply schedule. If even a fraction of the $166.5 trillion equity market migrates into perpetuals, Ethena is positioning USDe to capture the funding-rate premium before the trade becomes crowded.
Frequently asked questions
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Why is Ethena moving USDe's basis trade into equity perpetuals?
To find a yield stream less dependent on crypto cycles. Equity funding averaged 13.9% versus 3.9% for bitcoin, was positive on 94-97% of days at scale, and showed almost no correlation with bitcoin funding.
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How large is the equity perpetuals market right now?
Open interest has surged tenfold since March to $6.2 billion. The underlying global equities market was valued at $166.5 trillion in July, versus roughly $2.2 trillion for crypto.
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What changes did the ENA token overhaul introduce?
The Ethena Foundation eliminated monthly VC unlocks and put a vote on directing protocol revenues toward ENA buybacks, tightening the supply schedule alongside the new yield strategy.
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What happened to USDe supply?
USDe supply fell below $5 billion from a 2025 peak near $15 billion, as the bitcoin basis trade compressed. The equity perp pivot and FalconX facility are part of a broader rebuild.
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How quickly does Ethena expect RWA perpetuals to overtake crypto derivatives in USDe backing?
Within 12 to 24 months, according to the protocol, pending deployment at the first exchange partners Ethena expects to name in the coming weeks.
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