Ethena Labs Suspends German Operations Amid Regulatory Concerns Over USDe

Ethena Labs, the creator of the USDe synthetic stablecoin, is halting its operations in Germany due to regulatory scrutiny. The company announced on April 15th that it has reached an agreement with Germany's BaFin to cease all activities of its local subsidiary, Ethena GmbH.

This decision follows BaFin's identification of compliance issues and potential violations of securities laws related to USDe in March. These concerns led to a suspension of minting and redemption activities on March 21st. Ethena Labs has stated that it will not seek MiCAR authorization in Germany.

USDe, currently the fourth-largest stablecoin with a circulating value of $4.9 billion, maintains its dollar peg through delta-hedging strategies.