Ethena Foundation Launches SPAC for ENA Token

The Ethena Foundation is initiating a crypto treasury venture named StablecoinX, which aims to invest significantly in a $360 million ENA token buyback. The foundation's dedicated team announced a deal with the TLGY Acquisition special purpose acquisition company, paving the way for a public listing. Through the formation of a new validator and infrastructure business, Ethena aims to purchase millions in ENA tokens. Both the foundation and TLGY have agreed to private investments amounting to around $360 million, which includes a $60 million investment from the foundation alongside commitments from notable investors like Dragonfly, Ribbit Capital, Blockchain.com, Pantera Capital, and others. The investments are intended to support a long-term treasury plan focused on accumulating ENA, the foundation's native token, known for its significant role in the digital dollar ecosystem. Ethena, already the third-largest issuer of digital dollars behind Tether and Circle, sees this initiative as essential for boosting shareholder value by securing a pivotal stake in a rapidly growing market. The newly formed entity, StablecoinX Inc., will be publicly traded on Nasdaq under the USDE ticker and will manage ENA infrastructure while providing staking services. The team is dedicated to enhancing ENA's stock value and strategically reinvesting earnings into further token accumulation. Ethena also offers a synthetic dollar, USDe, which employs a delta-hedging strategy for stability, and has recently partnered with Securitize for innovative asset transfers with BlackRock’s tokenized fund. As per Ethena Foundation Director Marc Piano, the foundation’s role is to ensure the longevity and decentralization of Ethena, promoting disciplined investments that add long-term value to the ecosystem. With ENA currently trading at $0.52, representing a 6% increase for the day, the token's price reached an all-time high of $1.52 back in December 2024, reinforcing the promising outlook for this crypto asset.