A new service provider for the Ethena network, StablecoinX, is heading to the public market through a merger with TLGY Acquisition Corp.
The deal will bring in $360 million, which StablecoinX plans to use to build a reserve backed by ENA, the native token of the Ethena protocol.
Once the merger is finalized, the company will operate under the name StablecoinX Inc. Its Class A shares are expected to be listed on the Nasdaq under the ticker symbol “USDE”.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
How to Avoid Rug Pulls in Crypto? (5 Ways Explained)
The company will focus on providing infrastructure and staking services that support the Ethena ecosystem. Governance will remain with the Ethena Foundation, which will keep majority voting rights.
The funding consists of a private investment in public equity, which combines $260 million in cash with $100 million in locked ENA tokens offered at a discount. Investors backing the deal include the Ethena Foundation, Ribbit Capital, Pantera, Dragonfly, Galaxy Digital, Haun Ventures, and Polychain.
The merger is part of a longer-term partnership between StablecoinX and the Ethena Foundation, which will last five years and can be renewed. A joint committee from both sides will manage the reserve. The deal is expected to close by the end of 2025.
As part of their reserve strategy, the companies shared plans for how the funds will be used. The $260 million in cash will be used to purchase locked ENA tokens through a formal agreement.
Additionally, the Ethena Foundation will carry out daily token purchases from the open market, about $5 million each day, for the next six weeks.
Recently, Ether Machine also announced plans to launch a publicly traded Ethereum
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
