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Ethena Pay beta on Avalanche
Ethena launched a beta of Ethena Pay, a self-custodial mobile app that brings USDe synthetic-dollar balances into payments, savings, and cross-border transfers.
“Ethena Pay runs exclusively on Avalanche”
The app runs on Avalanche as its exclusive settlement layer, with Ethena saying it is designed so users do not need to select a blockchain or understand settlement mechanics.
Ethena Pay’s early access is limited to 400 users, with access expanding weekly during September, and the beta is available across 48 countries while the U.S., EU, Canada, Taiwan, and South Korea are excluded.
Ethena Pay lets users deposit fiat or cryptocurrencies, converts received funds into USDe, and uses IBAN details to transfer money to and from external bank accounts in local currencies.
Avalanche processes USDe transfers and settlement behind the app’s consumer interface, while the product is also described as offering a Visa payment card for purchases through Visa’s merchant network.
Rewards, tiers, and card cashback
Ethena Pay offers tier-based rewards tied to USDe balances, with Standard users able to earn up to 5% annually on balances capped at $5,000, while Pro and VIP users can earn up to 6% annually on caps of $15,000 and $50,000.
The beta also includes card rewards, with eligible card purchases earning up to 5% cashback credited in AVAX, and the app’s tier structure described as using a “Daily Boost” to bring eligible balances up to the advertised total.
In addition to base cashback, the app’s materials describe higher rewards at selected merchants, including up to 5% for Pro users and up to 10% for VIP users at those brands.
Ethena Pay is described as requiring at least one qualifying card transaction during each calendar month to receive the Daily Boost, and it states that balance and related rewards are not covered by the U.S. Federal Deposit Insurance Corporation or any other government-backed deposit insurance program.
OneSafe also frames the app as offering potential annual returns of up to 6% and describes USDe as a dollar-linked format that users can hold while transitioning between fiat and digital currencies.
Regulatory and market stakes
Ethena Pay’s rollout is explicitly shaped by regulatory constraints, with the app not initially available in the U.S., EU, Canada, Taiwan, and South Korea while Ethena expects expansion during the beta subject to regulatory approval.
“Germany’s BaFin ordered Ethena GmbH to gradually wind down its USDe-related activities”
The launch comes alongside broader scrutiny of Ethena’s USDe-related activities, including a reference to Germany’s BaFin ordering Ethena GmbH to gradually wind down its USDe-related activities after the company withdrew its application under the European crypto-asset regulation.
Market data cited in the coverage places USDe’s market capitalization at about $4.1 billion and describes ENA, Ethena’s governance token, as having a market capitalization of approximately $1.5 billion.
The Ethena Foundation proposal highlighted in the reporting would direct 95% of net revenue from Ethena’s core businesses toward ENA buybacks once USDe’s circulating supply reaches $7.5 billion, and the proposal is described as coinciding with ENA rising more than 10% and gaining 27% over the week.
KuCoin also notes that Ethena has processed more than $30 billion through its mint and redeem systems and that USDe is integrated across over 100 platforms and protocols, positioning Ethena Pay as a consumer-facing distribution channel for USDe beyond crypto trading and DeFi.