Coinbase Backs Ethena, to Launch ENA-Based Savings Product

Coinbase Ventures, the exchange's investment arm, has bought Ethena's ENA token on the open market. The companies also plan to launch a new on-chain savings product for Coinbase's more than 100 million users.

Ethena announced on June 2 that it had entered into a partnership with Coinbase to expand on-chain finance and savings products. Their first joint product will be launched next week. "We're excited to enter our first partnership supporting Coinbase's dollar savings product," Ethena founder Guy Young wrote on X. It will be the first time an Ethena product is offered to Coinbase's user base of more than 100 million.

Under the partnership, Coinbase will act as a key custodian, wallet provider and perpetual futures trading platform for Ethena. Ethena's yield-bearing synthetic dollar token, USDe, will also be distributed across the Coinbase ecosystem, including Base.

Ethena's governance token ENA jumped 20% immediately after the announcement. It later gave back part of the gain on profit-taking, but was still up more than 3% from 24 hours earlier even as the broader crypto market declined.

Ethena is a rapidly growing protocol that combines stablecoin demand with a derivatives-based funding strategy to provide tokenized investment yield. Assets deposited in the protocol reached $15 billion at the market peak in October. They have since fallen to about $5.3 billion as the market downturn and lower yields weighed on growth.