Ethena’s synthetic dollar USDe has shrunk from about $14.7Bn to roughly $6.4Bn in just over two months after the October 10 crypto crash. That’s an $8.3Bn exit as traders unwind risk and move toward simpler, fiat-backed stablecoins. This all happened during the biggest liquidation event in crypto history, when more than $19 billion in positions vanished, and the market wiped out around $1.3Tn in value. What Is USDe, and Why Did So Much Money Leave? USDe is a “synthetic stablecoin,” which means it does n ...

Shares in Italian soccer club Juventus rose than 17% after Exor, a holding company with majority ownership, rejected an all-cash offer from stablecoin giant Tether.  Tether’s all-cash offer to Exor on Friday was reportedly valued at €2.66 ($3.13) a share—a value around 21% higher than Friday’s closing price, according to data from Yahoo Finance. The offer valued the club around €1.1 billion in total ($1.29 billion). “Exor N.V. announces that its Board of Directors has unanimously rejected an unsolicited pr ...

Core Insights - Tether's profit for the first three quarters of 2025 has exceeded $10 billion, surpassing some of the largest banks globally [1] Financial Performance - The substantial revenue is primarily derived from Tether's $135 billion in U.S. Treasury bills, which back every USDT token in circulation [2] - Tether's earnings are competitive with major financial institutions, outperforming Bank of America and closely trailing Goldman Sachs and Morgan Stanley, which earned around $12 billion [3] Asset Holdings - Tether is one of the largest non-government holders of U.S. debt, with over $6.8 billion in surplus reserves and a total USDT supply exceeding $174 billion after issuing over $17 billion in Q3 [4] Industry Impact - The scale of Tether's operations indicates that stablecoins have become significant players in the financial sector, challenging traditional institutions [5] - Tether's growing profits and reserves are likely to attract increased scrutiny from regulators and traditional financial entities, raising questions about oversight and risk management [6] Competitive Landscape - Tether's performance signals a shift in the financial landscape, where digital finance companies are now competing directly with legacy banks, marking a pivotal moment for both sectors [7]

Core Insights - Stablecoins are crucial for the crypto economy in 2025, facilitating various financial services such as cross-border payments and decentralized finance (DeFi) lending [2] - Understanding the differences between leading stablecoins is essential for serious crypto investors [2] Ethena USDe Overview - Ethena USDe is a synthetic stablecoin designed to maintain a value of 1 USD per coin, utilizing delta-neutral trading strategies instead of traditional cash reserves [3][4] - The protocol combines a small amount of crypto holdings with short futures positions, allowing it to maintain price stability under various market conditions [4] - Ethena offers staking options with a yield of 5.5% as of October 12, 2025, and an average yield of 19% in 2024 [5] Dai Overview - Dai is a decentralized stablecoin that also targets a value of 1 USD per coin, but it uses overcollateralized crypto assets, primarily Ethereum and USDC, managed by smart contracts on the Ethereum blockchain [6] - Both Dai and Ethena USDe have shown resilience during recent market volatility, with only minor price fluctuations [7] - The choice between Dai and Ethena USDe depends on investor risk tolerance and preference for yield versus safety [7]

Core Insights - Stablecoins have emerged as a popular investment option for risk-averse investors, providing a safer alternative compared to traditional cryptocurrencies [2] - The primary goal of stablecoins is to maintain a value of $1.00, with the majority pegged to the U.S. dollar [3] - Stablecoins can facilitate faster and cheaper cross-border transactions and offer higher yields compared to traditional savings options [4] Comparison of Stablecoins - Ethena USDe and Dai are both pegged to the U.S. dollar but are not backed by actual U.S. dollars or Treasuries, differentiating them from stablecoins like USD Coin and PayPal USD [6] - Ethena USDe utilizes a mix of crypto assets and employs a balancing strategy between long and short positions in crypto to maintain its peg to the U.S. dollar [7][8] - Dai uses smart contracts to hold crypto assets as collateral while maintaining its peg to the U.S. dollar [9]

Ethereum Ecosystem Overview - Apps on Ethereum host approximately 355 billion USD in user assets [1] - ETH trades at roughly 144% of its ecosystem TVL (Total Value Locked) [1] Top Sectors & Apps by TVL - Top 5 sectors include stablecoins, lending, liquid staking, DEXs (Decentralized Exchanges), and RWAs (Real-World Assets) [1] - Leading apps by TVL are Tether, Aave, Circle, Lido, and EigenLayer [1]

Core Viewpoint - Circle Internet is exploring the possibility of reversing transactions involving its stablecoin, USDC, which could enhance its mainstream adoption but may conflict with the principles of decentralization in cryptocurrency [1][3]. Company Summary - Circle is considering allowing refunds for transactions in cases of fraud or disputes, similar to traditional finance (TradFi) practices, which could facilitate wider acceptance of stablecoins [3]. - The company has been a leader in the adoption of stablecoins in the U.S. following its successful initial public offering (IPO) in June [4]. Industry Summary - Stablecoins, which are pegged to traditional financial assets, play a crucial role in the cryptocurrency ecosystem, providing stability against the volatility of cryptocurrencies like Bitcoin and Ethereum [2]. - The stablecoin market has a total market capitalization of approximately $300 billion, with USDC holding a market cap of $74 billion and Tether's USDT leading at $173 billion [2]. - There is a tension between the desire for immediate transaction transfers and the need for settlement finality, which is a core principle in the cryptocurrency space [4].

Core Insights - Hyperliquid has selected Native Markets as the issuer of the new USDH stablecoin, marking a significant development in the $160 billion stablecoin sector [2][5] - Native Markets is backed by notable figures from the finance and crypto industries, including former executives from Uniswap Labs and BlackRock [3][4] - The revenue-sharing model proposed by Native Markets aims to distribute 100% of stablecoin revenues to Hyperliquid users, contrasting with Circle's current model that does not share revenues [5][6] Company Developments - The decision to partner with Native Markets was finalized on September 15 after a week-long bidding process [2] - Native Markets will issue USDH through Bridge, a stablecoin infrastructure acquired by Stripe for $1.1 billion, with BlackRock managing treasury reserves initially [4] - Over time, Fidelity and BNY Mellon are expected to join as custodians for the USDH stablecoin [4] Market Implications - The aggressive revenue-sharing model could lead to a price war in the stablecoin market, which is considered one of the most lucrative segments in crypto [5] - Hyperliquid users currently hold approximately $6 billion in USDC, representing about 8% of total USDC circulation, which may be threatened by the introduction of USDH [6] - The decision has sidelined competitors such as Paxos, Ethena, BitGo, Frax Finance, and Agora, raising questions about the transparency of the bidding process [7]