Ethena Labs agrees to withdraw activity from Germany, abandon MiCA authorization

Ethena Labs will stop its operations in Germany and has ceased the issuance of USDe stablecoin. The company has also abandoned efforts to secure EU authorization under MiCA regulations. The USDe supply has decreased to 4.9 billion tokens, marking a three-month low, influenced by market pressures.

All German customers will now access USDe through Ethena’s international branch, Ethena BVI. Despite regulatory challenges, Ethena aims to enhance USDe’s utility and transparency, introducing a proof-of-reserves program to validate the stablecoin’s backing with tangible assets.