Ethena Pay, a self-custodial neobank built on the Avalanche blockchain, launched on September 1. The platform allows users to hold balances in USDe, a synthetic dollar, and earn up to 6% APY. Users can spend these funds via a Visa card, which offers baseline cashback of 4-5% and up to 10% at specific merchants, paid in AVAX.
The service is currently available on iOS in approximately 48-50 countries, excluding the US. The initial beta phase included around 400 users. Within the first two weeks of operation, the platform recorded seven-figure deposits. Historically, the broader Ethena ecosystem has processed over $30 billion in mint and redeem flows.
The company plans to expand into the US, UK, and EU markets in the coming weeks. The roadmap also includes the addition of Android support, multi-currency accounts, and further geographic expansion. To access higher Pro and VIP cashback tiers, users must either lock ENA governance tokens or participate in a referral program.
Ethena Labs was founded in March 2023 by Guy Young. While the project initially relied on delta-neutral strategies to maintain the USDe peg, it has begun incorporating real-world asset lending into its backing. This shift aims to mitigate risks associated with funding rate volatility and exchange counterparty exposure.
