Ethena and USDe
A fiat stablecoin holds cash and short-term government bonds for every token it issues. Ethena takes another route: it calls USDe "the world's best synthetic dollar product", and its documentation describes it as "a synthetic dollar, backed with crypto assets and corresponding short futures positions". In Germany, Ethena is known for the first enforcement case BaFin brought under MiCA. Dated events on the topic are in the calendar below.
A dollar token without dollars in the bank
For a payment firm a dollar token is only as good as what backs it. An e-money token such as USDC or EURC is backed by deposits and short-term assets and can be redeemed at par from a licensed issuer; the e-money tokens page explains that model. USDe holds crypto-assets such as ether and bitcoin and sells perpetual futures of the same size, so a fall in the crypto price is offset by a gain on the short. The perpetual futures page explains the contracts and the funding rate they pay.
The holders of the staked version, sUSDe, receive the protocol's revenue. Ethena lists basis trades in crypto perpetual and futures markets, DeFi and institutional lending, and tokenized short-term government debt as its sources. Its documentation states that USDe is not a fiat stablecoin and that its risks differ, and that sUSDe is not offered to persons resident in the EU or EEA.
BaFin and Ethena GmbH
Ethena GmbH, registered in Frankfurt am Main, issued USDe in the EU under the MiCA transitional rules after applying for a license in July 2024. BaFin stopped its new business on March 21, 2025. The company withdrew its application on April 3, 2025, and on April 4 BaFin imposed a coercive fine of 600,000 euros. On April 14, 2025 BaFin ordered the winding-up of the business that required authorization and classed USDe as an asset-referenced token. BaFin called it the first time it had imposed measures under MiCAR and cited serious shortcomings in the business organization and breaches of MiCAR.
In June 2025 BaFin set a redemption process: holders could claim against Ethena GmbH until August 6, 2025, and after that only against Ethena (BVI) Limited. For banks and payment firms the case shows how MiCA treats a token that tracks a currency without being an e-money token. The stablecoins in Germany page covers the licensed issuers, and MiCAR the categories.
Upcoming stablecoin and digital asset events in Germany
Finance Loop and digital dollars
Stablecoins and their backing are a subject Finance Loop has covered at the Bybit EU x Circle Roadshow in Frankfurt and at the Digital Euro Conference, which Finance Loop has partnered with. Finance Loop brings stablecoin issuers and payment firms together at events in Frankfurt, Munich, Berlin and Hamburg.
Payments & Digital Money
Risk & Compliance
What is Ethena USDe?
USDe is a dollar-tracking token from Ethena. It is backed by crypto-assets and short perpetual futures positions of the same size, so the position keeps its dollar value when crypto prices move. Ethena calls it a synthetic dollar.
Is USDe a stablecoin under MiCA?
BaFin classed USDe as an asset-referenced token in its order against Ethena GmbH. It is not an e-money token, which would need a license as a bank or e-money institution.
Why did BaFin act against Ethena?
BaFin found serious shortcomings in the business organization of Ethena GmbH and breaches of MiCAR. After Ethena withdrew its license application, BaFin ordered the business to be wound up in April 2025.
How does USDe earn its yield?
Ethena lists basis trades in crypto perpetual and futures markets, lending and tokenized short-term government debt. The revenue goes to holders of staked USDe (sUSDe), which is not offered to EU residents.
Ethena and Finance Loop
Finance Loop covers Ethena in its Payments & Digital Money track, where the question is what backs a digital dollar, and in Risk & Compliance, where BaFin's first MiCA case belongs. Finance Loop has partnered with the Digital Euro Conference and supported the Bybit EU x Circle Roadshow in Frankfurt.
Finance Loop is a professional network and has the goal of driving the adoption of emerging technologies in finance, such as AI, digital payments, cloud and blockchain solutions. Finance Loop helps its members build skills and personal networks in these fields: Investment & Digital Assets, Payments & Digital Money, Digital Infrastructure & Sovereignty, and Risk & Compliance.