MEXC Ventures, the investment arm of crypto exchange MEXC, is investing a total of $36 million into Ethena and its USDe stablecoin, according to a press release . The firm is making a strategic investment of $16 million in Ethena and bought $20 million in USDe stablecoin to expand the adoption of synthetic dollars in decentralized finance (DeFi) and offer an alternative to fiat-backed stablecoins, the statement said. The move comes after Ethena, the developer of USDe, raised $100 million last year , which was backed by Franklin Templeton and Fidelity Investments-affiliated F-Prime Capital, among others. Known as a synthetic stablecoin, USDe is unlike traditional stablecoins like USDT and USDC in that it is not backed 1:1 by fiat assets. Instead, it maintains its peg by collateralizing stablecoins and taking futures positions with large open interest. USDe's market cap has risen to nearly $6 billion, while more traditional stablecoins currently have market caps above $50 billion, according to CoinMarketCap data. The total market cap for stablecoins is currently above $200 billion. MEXC’s backing comes as competition in the stablecoin market intensifies, with projects seeking innovative models to ensure stability and accessibility. "As demand for investment in bitcoin and other digital assets continues to rise, stablecoins are set to attract even greater investment," said Tracy Jin, COO of MEXC. "MEXC sees Ethena as a key player in the development of diverse stablecoins that will drive the crypto industry forward, supporting broader adoption and providing users with more stable and efficient financial solutions." Read more: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance
