Ethena expands trading access through Flowdesk partnership
Ethena Labs has formed a partnership with institutional trading desk Flowdesk to broaden access to its stablecoin offerings. The collaboration will support trading and reward programs for both USDe and USDtb tokens. Flowdesk serves various institutional clients including token issuers, hedge funds, and exchanges.
This development comes at a significant moment for Ethena’s ecosystem. USDe, the synthetic dollar stablecoin, has surpassed $14 billion in market capitalization according to recent data. The circulating supply has increased by 21% over the past month, positioning USDe as the third-largest stablecoin behind only USDT and USDC.
Different approaches to stablecoin backing
USDe operates as a synthetic dollar backed primarily by crypto assets. It maintains its peg through a delta-neutral hedging strategy that aims to keep the value stable at $1. This approach differs from traditional stablecoin models.
USDtb takes a more conventional path, backed by real-world assets including BlackRock’s tokenized money market fund BUIDL and other stablecoins. This gives it a risk profile more similar to established fiat-backed stablecoins like USDC and USDT.
Institutional interest and revenue growth
The Ethena ecosystem has attracted attention from public companies seeking exposure to its revenue model. Mega Matrix filed a $2 billion shelf registration specifically to acquire Ethena’s governance token ENA. Owning ENA would provide participation in governance and access to revenue generated by USDe.
Ethena’s cumulative revenue exceeded $500 million in August, bringing the protocol closer to activating its fee distribution mechanism. This would share protocol revenue with ENA token holders.
Another public company, formed through the merger of StablecoinX and TLGY Acquisition with $890 million in funding, has explicitly stated intentions to acquire digital assets including ENA.
Market concerns and resilience
Despite the rapid growth, some market participants remain cautious about derivatives-backed stablecoin models. Research indicates that synthetic stablecoins face challenges including funding rate volatility, counterparty risk, and exposure to USDT-margined contracts.
The key question remains whether synthetic dollars can maintain stability during extended periods of negative funding rates or stress in derivatives markets. So far, USDe has continued to attract demand as users appear willing to accept synthetic risk in exchange for yield opportunities.
The partnership with Flowdesk represents another step in Ethena’s expansion, providing institutional-grade trading infrastructure for its growing stablecoin ecosystem.
