Ethena: Will Extend Neutral Arbitrage Trading to Stock and Commodity Markets

BlockBeats News, April 7th, Ethena officially announced that, after obtaining approval from an independent risk committee, USDe will undergo collateral type expansion.

Ethena stated that this collateral asset diversification includes four directions, each of which is a natural extension of Ethena's existing business:

1. Institutional stablecoin lending with overcollateralization: Custody of collateral assets provided by borrowers by a third-party institutional-grade custodian;

2. More real-world assets (RWA) excluding U.S. Treasuries (T-Bills): Expansion to more high-quality, liquid credit assets;

3. Stock and commodity basis trading: Extending Ethena's delta-neutral approach applied to crypto assets to traditional assets;

4. Prime Lending for trading institutions: Providing funding to trading firms through overcollateralized loans, with the counterparty taking on the exchange platform risk.