Coinbase Chosen as Primary Custodian for ENA Tokens

Ethena Labs, the team behind the first on-chain synthetic dollar protocol built on Ethereum, has selected Coinbase Prime to provide custody and self-custodial wallet services for their protocol via a multi-product agreement.

Coinbase has been chosen as the primary custodian for ENA tokens, highlighting Coinbase Custody’s reputation as the largest and most secure crypto custodian in the market.

This decision was made after extensive due diligence and evaluation of potential alternatives, indicating Ethena’s trust in Coinbase’s ability to safeguard its tokens.

As part of this agreement, Ethena will also be integrating the Coinbase Prime Web3 Wallet into its protocol. This wallet serves as more than just a tool for accessing cryptocurrency and decentralized applications (dapps); it is a critical component of Ethena’s operational processes.

The Prime Web3 Wallet boasts a seamless interface and powerful reporting tools, all fully integrated with Coinbase Prime. By adding this wallet to its minting and redeeming operations, Ethena aims to streamline its infrastructure, making it more efficient and user-friendly.

In addition to these services, Ethena will be increasing the utilization of USDC within its protocol. By implementing USDC, Ethena intends to enhance the backing of its synthetic dollar, ensuring greater stability and scalability within its ecosystem. This move aligns with Ethena’s strategic approach of leveraging stablecoins to optimize protocol performance.

Ethena’s decision to partner with Coinbase stems from the company’s reputation for innovation, stringent risk management, and established presence in the cryptocurrency market.

This choice reflects Coinbase’s standing as a trusted provider of secure and cutting-edge solutions to its partners. Guy Young, CEO and founder of Ethena Labs, commented on the partnership:

“We’re thrilled to work with one of the preeminent brokerage platforms and most secure custodians in our industry. Coinbase’s outstanding track record of consistently providing best-in-class, institution-grade products made this a no-brainer for us.”

In other news, Drift Protocol has collaborated with Ethena Labs to launch USDe and sUSDe as yield-generating collateral on the Solana blockchain. This partnership is expected to drastically improve scalability, potentially generating $2–3 billion in open interest in Solana.

Moreover, Ethena’s partnership with Bybit offers up to 20% APR on USDe collateral, along with fee-free trading and daily prizes.

Meanwhile, Ethena’s native token, ENA, has seen a substantial surge in value. It currently trades at $0.3619, showing an increase of 17.55% over the last 24 hours and 20.74% for the last week. ENA's market cap today is approximately $653.86 million.

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