M2 Capital Restricted, the funding arm of UAE-based M2 Holdings, has invested $20 million in Ethena’s governance token, ENA. The transfer underscores a push to attach Center Jap traders with new digital asset infrastructure at a time when the area is in search of a bigger position in international finance.
Ethena is greatest identified for its crypto-native artificial greenback, USDe, and its reward-bearing model, sUSDe. Each are backed by crypto collateral and maintained by way of hedging methods designed to cut back volatility.
The protocol has attracted greater than $14 billion in deposits since launching in 2024, reflecting urge for food for stablecoin-like merchandise that additionally generate yield.
M2 International Wealth, an affiliate of M2 Holdings, will combine Ethena into its wealth administration choices. The group says this provides a regulated manner for shoppers to entry returns from rising digital property. Kim Wong, M2’s head of treasury, stated the deal units a brand new normal for belief and safety within the area’s market.
The funding follows M2’s participation in a funding initiative for the Sui blockchain ecosystem earlier this yr. It additionally comes because the UAE continues to strengthen its regulatory framework to draw crypto companies and traders.
By aligning with Ethena, M2 goals to supply custody, yield, and liquidity providers whereas accelerating adoption of recent digital finance instruments within the Center East.
