Ethena: Will expand neutral arbitrage trading to the stock and commodities markets

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April 7 news: Ethena’s official post announced that, after receiving approval from an independent risk committee, USDe will expand its collateral types. Ethena said that this diversification of collateral assets includes four areas, each a natural extension of Ethena’s existing business:

  1. Over-collateralized institutional stablecoin lending: custody of the collateral assets provided by the borrowers via a third-party institutional-grade custodian;
  2. More real-world assets (RWA) beyond U.S. Treasury bills (T-Bills): expanding to more high-quality, liquid credit-type assets;
  3. Stock and commodity basis trading: expanding Ethena’s delta-neutral (neutral hedging) approach that has already been applied to crypto assets to traditional assets;
  4. Prime Lending for trading institutions: providing funds to trading companies through over-collateralized loans, with the counterparty bearing the risk of the trading platform.
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