Ethena launches Pay app on Avalanche with yield and cashback rewards

Ethena Pay beta launches on Avalanche

Ethena Labs has launched the beta version of Ethena Pay, a self-custodial money app built on the Avalanche blockchain. The app is now available in 48 countries, including Brazil, Mexico, South Africa, and Japan, but excludes the U.S. and European Union for now.

A self-custodial app means users control their own funds, unlike traditional banking where a third party holds the money. Ethena Pay uses Ethena’s synthetic dollar, USDe, as its primary stablecoin—a type of cryptocurrency designed to maintain a steady value, often pegged to the U.S. dollar.

Rewards and features

Ethena Pay offers financial rewards, including up to 6% annual yield on balances and up to 10% cashback at selected brands like Uber, Spotify, and Claude. Users can also earn cashback through the Ethena Pay Card, with rates ranging from 4% to 5% in Avalanche’s AVAX tokens, depending on their membership tier.

The app supports free instant global transfers via usernames or tags, with no transfer fees. Bank transfers in USD, EUR, and GBP are also free, while other currencies incur fees between 0.05% and 0.1%. Users can receive fiat money through International Bank Account Number (IBAN) details or crypto directly into their wallet, with funds converted to USDe.

Membership tiers and availability

Ethena Pay has three membership tiers: Standard (free), Pro (unlocked by locking $2,000 worth of Ethena’s ENA tokens or referring 10 users), and VIP (unlocked by locking $10,000 in ENA or referring 50 users).

Yield rates vary by tier: Standard users earn 5% APY on balances up to $5,000, while Pro and VIP users earn 6% on balances up to $15,000 and $50,000, respectively. The app is available on iOS and Android, with plans to expand to more countries, including the U.S., EU, Canada, Taiwan, and South Korea, subject to regulatory approvals.

Why Avalanche?

Ethena chose Avalanche as its exclusive blockchain partner, citing alignment in building financial infrastructure for businesses. Avalanche has prior experience in stablecoin-based payment products, such as its work with Rain cards.

Regulatory context

The launch follows regulatory challenges for Ethena in Europe. In June 2025, Germany’s BaFin ordered Ethena GmbH to wind down its USDe business after the company withdrew its application for authorization under the EU’s crypto rules.

Ethena Pay’s regulatory status remains unclear, with founder Guy Young stating that details will be made public this week.

What is confirmed

• Ethena Pay is a self-custodial app built on Avalanche, available in beta in 48 countries.
• The app offers up to 6% APY on balances and up to 10% cashback at select brands.
• Membership tiers (Standard, Pro, VIP) determine yield rates and cashback percentages.
• Free transfers are available for USD, EUR, and GBP; other currencies have fees.
• The U.S. and EU are not included in the initial rollout.

What is still unclear

• The specific regulatory approvals or licenses Ethena Pay holds in the 48 countries where it is available.
• The funding source for rewards beyond the USDe rate.

Sources

• The Block