Around 5.4 billion USDe tokens circulate, with a large portion issued before MiCA’s implementation.
The regulator suspects Ethena GmbH is offering unapproved securities, including USDe and sUSDe tokens.
Germany's financial regulator, BaFin, has identified
significant deficiencies in Ethena GmbH’s approval process for its USDe token.
As a result, BaFin has implemented immediate supervisory measures, including a
ban on publicly offering the token and an order to freeze the company’s asset
reserves held by depositary agencies.
BaFin suspects that Ethena GmbH has been offering securities
in Germany without an approved prospectus. Additional regulatory actions,
including a potential ban on these offerings, are being considered.
5.4 Billion USDe Tokens Circulate Globally
Ethena GmbH, based in Frankfurt am Main, issues the USDe
token, classified as an asset-referenced token under the Markets in
Crypto-Assets Regulation (MiCA). The company uses various crypto assets and an
algorithmic hedging strategy to maintain parity with the US dollar.
Under MiCA’s transitional rules, issuers of asset-referenced
tokens can operate while awaiting regulatory approval. Ethena GmbH had applied
for approval but began issuing USDe in Germany before receiving it.
Currently, around 5.4 billion USDe tokens are in
circulation, with a significant portion issued outside Germany before MiCA’s
implementation. Furthermore, Ethena BVI Limited, based in the British Virgin
Islands, has been issuing the token since the beginning of 2025.
BaFin's review found shortcomings in Ethena GmbH’s business
organization, including non-compliance with MiCA’s asset reserves and capital
requirements. The regulator will provide further updates once the approval
process concludes.
Meanwhile, the USDEUSD daily chart shows a bearish move starting from
yesterday. As of now, it looks like the price may continue with another bearish
day.
USDEUSD Daily Chart, Source: TradingView
Investigation for Unapproved Token Offerings
BaFin has imposed several measures, including freezing the
company's asset reserves, restricting access by executives, and blocking new
business activities, including its website. While these actions are not yet
final, token holders cannot redeem USDe through Ethena GmbH, though secondary
market trading remains unaffected.
Additionally, BaFin suspects that Ethena GmbH is offering
“sUSDe” tokens, issued by Ethena OpCo. Ltd, without the necessary
prospectus. These sUSDe tokens, exchanged for USDe tokens, provide returns to
holders.
Germany's financial regulator, BaFin, has identified
significant deficiencies in Ethena GmbH’s approval process for its USDe token.
As a result, BaFin has implemented immediate supervisory measures, including a
ban on publicly offering the token and an order to freeze the company’s asset
reserves held by depositary agencies.
BaFin suspects that Ethena GmbH has been offering securities
in Germany without an approved prospectus. Additional regulatory actions,
including a potential ban on these offerings, are being considered.
5.4 Billion USDe Tokens Circulate Globally
Ethena GmbH, based in Frankfurt am Main, issues the USDe
token, classified as an asset-referenced token under the Markets in
Crypto-Assets Regulation (MiCA). The company uses various crypto assets and an
algorithmic hedging strategy to maintain parity with the US dollar.
Under MiCA’s transitional rules, issuers of asset-referenced
tokens can operate while awaiting regulatory approval. Ethena GmbH had applied
for approval but began issuing USDe in Germany before receiving it.
Currently, around 5.4 billion USDe tokens are in
circulation, with a significant portion issued outside Germany before MiCA’s
implementation. Furthermore, Ethena BVI Limited, based in the British Virgin
Islands, has been issuing the token since the beginning of 2025.
BaFin's review found shortcomings in Ethena GmbH’s business
organization, including non-compliance with MiCA’s asset reserves and capital
requirements. The regulator will provide further updates once the approval
process concludes.
Meanwhile, the USDEUSD daily chart shows a bearish move starting from
yesterday. As of now, it looks like the price may continue with another bearish
day.
USDEUSD Daily Chart, Source: TradingView
Investigation for Unapproved Token Offerings
BaFin has imposed several measures, including freezing the
company's asset reserves, restricting access by executives, and blocking new
business activities, including its website. While these actions are not yet
final, token holders cannot redeem USDe through Ethena GmbH, though secondary
market trading remains unaffected.
Additionally, BaFin suspects that Ethena GmbH is offering
“sUSDe” tokens, issued by Ethena OpCo. Ltd, without the necessary
prospectus. These sUSDe tokens, exchanged for USDe tokens, provide returns to
holders.
Tareq is a financial writer with 15 years of experience covering global markets. His work spans technical analysis, forex broker reviews, and market sentiment, with a focus on topics relevant to retail traders. He joined Finance Magnates in 2023.
At Finance Magnates, he serves as News Editor, covering retail forex and CFD brokers, cryptocurrency exchanges, fintech firms, and regulatory developments shaping the trading industry. He holds an Honours degree in Information Technology from Anfell College, London.
Education:
Honours degree Information Technology, Anfell College, London
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Watch the full video to see if Hola Prime Markets fits your trading needs.
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Connect with us:
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Watch the full video to see if Hola Prime fits your trading style.
📣 Stay up to date with the latest in finance and trading. Follow Finance Magnates for industry news, insights, and global event coverage.
Connect with us:
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▶️ YouTube: /@financemagnates_official
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Watch the full video to see if Hola Prime fits your trading style.
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Connect with us:
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