Ethena Adds Tokenized Stocks to USDe Backing Through Binance Equity Trade

Summary

• Ethena will pair Binance tokenized stocks with equity perpetuals, expanding USDe’s collateral strategy beyond crypto while hedging stock price movements.
• Binance equity basis funding averaged above 11% annualized over six months, although historical rates cannot guarantee future returns for USDe.
• Ethena’s Risk Committee reviewed the allocation, while eligibility rules require established perpetual contracts and matching tokenized stocks on Binance for hedging.

Ethena will begin using tokenized stocks and equity perpetuals to support USDe, extending its hedging strategy beyond cryptocurrency markets. Binance will provide the first trading venue, with allocations beginning September 25, according to Ethena’s announcement.

According to the announcement on X, Ethena will pair Binance bStocks with short USDT-denominated equity perpetuals to collect funding payments while hedging stock price movements. The strategy extends Ethena’s existing crypto basis trades to stocks, broadening USDe’s potential backing assets while introducing different trading hours and risks.

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Binance Partnership Brings Equity Perpetuals Into USDe’s Collateral Strategy

According to Ethena, the addressable market for underlying assets expands from approximately $2.5 trillion in crypto to more than $150 trillion in real-world assets. That comparison describes the wider market opportunity, rather than an amount Ethena has allocated or secured as USDe backing.

Ethena also pointed to Binance equity basis funding, which it calculated at an annualized average above 11% over six months. Meanwhile, equity perpetual open interest grew by an average of roughly 30% monthly during the preceding three months.

Those figures describe past market conditions and do not establish the funding returns that future USDe positions will earn. Funding rates can change, while differences between tokenized stock prices and perpetual prices can affect a hedge.

The partnership includes another measure intended to address trading risk. Ethena stated that Binance assigns eligible delta-neutral accounts, including its own, lower priority for auto-deleveraging.

Auto-deleveraging can reduce an exchange’s open positions during severe market stress, potentially disrupting a hedge even when its two sides initially match. Lower priority reduces Ethena’s exposure to that mechanism, although it does not remove the possibility of losses.

Risk Committee Sets Conditions for Equity Allocations

Ethena linked the allocation to a Risk Committee review, alongside its legal and risk due diligence. The committee’s published framework requires qualifying contracts to meet minimum open interest and funding history thresholds.

It also requires a matching tokenized stock on the same venue and excludes leveraged or inverse products. Those conditions narrow the eligible trades, despite the much larger equity market Ethena identified in its announcement.

Ethena expects equity perpetuals to offer a larger opportunity than the crypto perpetual positions it captured during the previous cycle. Its transparency dashboards will show the collateral allocations as the new strategy takes shape.

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