StablecoinX

The company's primary business model revolves around two core functions. First, it operates as a validator and infrastructure provider for the Ethena protocol, running technical services to support the network behind the USDe and USDtb digital dollars. Second, StablecoinX is executing a multi-year treasury strategy to build a substantial reserve of ENA, the native governance token of the Ethena protocol. This strategy involves acquiring large amounts of locked ENA tokens, positioning the company as a pure-play treasury vehicle for public market investors to gain exposure to the Ethena ecosystem. The company is committed to a permanent capital mandate, meaning it will hold the ENA it acquires on its balance sheet without selling, lending, or pledging them, thereby aiming to increase the backing of each share over time.

The transaction was supported by significant private investment in public equity (PIPE) financing, totaling approximately $890 million from two rounds. These funds are primarily used to purchase discounted, locked ENA tokens from a subsidiary of the Ethena Foundation, which in turn uses the proceeds to buy back ENA on public markets. Key investors in the PIPE financing include Ribbit Capital, Pantera, Dragonfly, Galaxy Digital, Brevan Howard, and Haun Ventures, among others. The business is led by CEO Young Cho, who also served as the CEO of TLGY. Guy Young, the founder of Ethena Labs, acts as an advisor to StablecoinX.