Ethena launches USDe payments app with 6% rewards in 48 countries

Ethena has launched a new app called Ethena Pay, which lets users hold, spend, and transfer its synthetic dollar stablecoin, USDe. The app offers up to 6% in annual rewards and supports payments through a card, as well as cross-border transfers.

How the app works

The self-custodial app allows users to deposit fiat or crypto, which is then converted into USDe. Users can move money to and from bank accounts using IBAN details, with funds converted into local currencies. The app also supports savings and everyday spending.

The initial beta rollout covers 48 countries across Latin America, the Caribbean, Africa, and Asia, but is currently limited to 400 users. Access will expand weekly. Avalanche will serve as the exclusive blockchain for processing payments and transfers.

Ethena Pay is not yet available in the US, EU, Canada, Taiwan, or South Korea, but the company plans to enter these markets during the beta phase, depending on regulatory approval.

Key details about USDe

• USDe is a synthetic dollar, a type of stablecoin designed to maintain a value close to $1 without relying on traditional banking systems.
• It uses crypto collateral and hedging strategies, such as derivatives, to keep its value stable.
• USDe has a market capitalization of about $4.1 billion, making it the sixth-largest stablecoin, according to DefiLlama.

What is still unclear

It is not specified when Ethena Pay will become available in restricted regions like the US and EU, as this depends on regulatory approvals.

Why it matters

The launch of Ethena Pay expands the use of USDe beyond trading, bringing it into everyday financial activities like payments and savings. This could increase adoption of the stablecoin in regions where access to traditional banking is limited.

Sources

• Cointelegraph