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- Ethena has added tokenized U.S. equities to the basis trading strategy used for part of USDe’s backing.
- Ethena will use Binance bStocks for the long side and hedge with short equity perpetual positions.
- Ethena’s framework requires an eligible equity perpetual to maintain at least $25 million in open interest.
Ethena has added tokenized U.S. equities to the basis trading strategy used for part of USDe’s backing, pairing Binance bStocks with short equity perpetual positions on the same exchange.
The move extends a strategy previously centered on crypto markets into listed equities. Ethena’s Risk Committee approved a framework for tokenized equity basis trades, with Binance becoming the first announced venue for deployment.
Binance BStocks Provide Long Side Of Equity Basis Trade
Ethena will use bStocks for tokenized equity exposure and hedge those positions with corresponding Binance equity perpetual futures.
The structure is designed so gains or losses on the spot exposure are offset by the derivatives position, leaving funding and the difference between spot and perpetual pricing as the principal sources of return.
bStocks are issued by BTech Holdings and represent economic interests in underlying securities rather than direct share ownership. Eligible users can convert them into the corresponding securities where permitted, but bStock holders do not receive the voting rights attached to direct ownership.
Risk Framework Requires $25M in 14-Day Open Interest
Ethena’s framework requires an eligible equity perpetual to maintain at least $25 million in one-sided open interest on a 14-day average and at least 30 days of funding history. The underlying must be a listed security, leveraged and inverse products are excluded, and a matching tokenized spot instrument must trade on the same venue.
When the framework was published in August, those tests admitted 17 markets on Binance and three on OKX, with none qualifying on Bybit or Kraken.
Ethena now says Binance has more than $2.9 billion in equity perpetual open interest. Data supplied by the company also puts the average equity basis at 3.56% annualized over the previous six months.
USDe Supply Stands Near $4.9B as Equity Deployment Begins
The equity allocation expands a USDe backing portfolio that has already diversified beyond Ethena’s original crypto basis model.
In early July, crypto basis positions represented about 1% of backing, while DeFi lending, liquid stablecoins, tokenized real-world assets and institutional lending accounted for most of the portfolio at that time. USDe supply currently stands near $4.9 billion.
The first equity deployments will use Binance bStocks and matching perpetual contracts under Ethena’s Risk Committee framework, with position sizes subject to the strategy’s liquidity and risk limits.
