Ethena Labs targets $20B USDe growth as it adds BNB, XRP, HYPE to its collateral framework

Ethena Labs has expanded the database of eligible assets to enactment its synthetic dollar, USDe, by approving BNB, XRP, and Hyperliquid’s HYPE.

The determination is portion of a caller Eligible Asset Framework that sets wide benchmarks for which tokens tin beryllium utilized successful the stablecoin’s collateral system.

Liquidity concerns

According to the Ethena Risk Committee, the model addresses liquidity concerns successful spot and perpetual futures markets. The committee noted that the considered assets indispensable wide a minimum threshold earlier they tin beryllium deemed suitable for the hedging strategy that underpins USDe.

Under the policy, an plus indispensable amusement much than $1 cardinal successful unfastened involvement implicit a two-week period, astatine slightest $100 cardinal successful combined regular spot and perpetual trading volume, and capable marketplace extent connected some sides.

Specifically, the bid books indispensable show astir $500,000 successful spot extent and $10 cardinal successful perpetual depth, averaged implicit 2 weeks.

The committee said these precocious criteria purpose to trim the hazard of slippage and execution delays that could hap during portfolio rebalancing.

Although support signals that a token meets the framework’s requirements, the committee clarified that onboarding whitethorn not hap immediately. Notably, BNB is the archetypal eligible plus backing USDe nether this caller framework.

USDe to $20 billion

Ethena laminitis Guy Young has shared a bullish outlook for USDe growth, predicting that the asset’s proviso could scope $20 billion.

According to him, USDe’s circulation astir doubled during the Federal Reserve’s late-2024 easing cycle, erstwhile backing spreads against Treasury bills jumped from adjacent zero to implicit 20% successful conscionable a fewer weeks.

Considering this, Young predicted that the stablecoin’s proviso could transcend $20 cardinal wrong a period if akin conditions look successful the existent cycle.

The projection comes arsenic USDe secures a listing connected Coinbase, marking a important milestone for the project’s accessibility successful the US market.

USDe is the third-largest stablecoin, trailing lone USDT and USDC, with a circulating proviso of $11.8 billion, according to CryptoSlate data.

The station Ethena Labs targets $20B USDe maturation arsenic it adds BNB, XRP, HYPE to its collateral framework appeared archetypal connected CryptoSlate.