German regulator BaFin has ordered stablecoin issuer Ethena to wind up its German business and redeem its tokens. It is the first time BaFin has imposed measures under Europe’s crypto MiCA regulations. Apart from forcing the shuttering of the business in Germany, the regulator also earlier prevented the managing directors from disposing of reserves, a serious move. However, the stablecoin issuer has shrugged it off, and appears to have shifted any remaining activities to the British Virgin Islands.
Ethena’s backers include asset managers Fidelity and Franklin Templeton.
BaFin’s actions related to USDe, an asset referenced token which maintains a stable value by using ETH derivatives. While the main affected stablecoin, USDe, has dropped in market capitalization from $5.8 billion at the end of February to $4.9 billion today, Ethena Labs’ new fiat backed stablecoin USDtb has grown from $90 million to $1.4 billion during the same period. In other words, the combined Ethena total value has expanded during the period.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
