Ethena has expanded the backing strategy for its synthetic dollar USDe to include tokenized U.S. equities. The protocol will use Binance bStocks as the spot component and corresponding equity perpetual futures for hedging, creating a market-neutral position designed to capture the basis between the two markets.

The Ethena Risk Committee had previously approved a framework for adding tokenized equity basis trades to the allocation strategy. Under the approach, bStocks provide tokenized equity exposure while short positions in Binance’s USDT-denominated equity perpetual contracts offset price movements in the underlying assets. The structure aims to generate returns primarily from the difference between spot and perpetual prices rather than directional stock moves.

Young noted that equities trade in the hundreds of trillions of dollars globally. As more of that market moves onchain, Ethena sees a substantial opportunity to continue diversifying its backing strategy. The protocol expects the opportunity in equity perpetual markets to eventually become significantly larger than the crypto perpetual market.

Market Scale and Performance Metrics

Binance currently holds more than $2.9 billion in open interest across equity perpetual futures, according to figures provided by Ethena. That open interest has grown at a 105 percent monthly compounded rate this year. The equity basis averaged an annualized 3.56 percent over the past six months.

Binance launched its first bStocks in June. The tokens represent interests in securities held by issuer BTech Holdings Limited and are backed one-to-one by the corresponding shares. Eligible users can convert between the tokenized form and the underlying securities where permitted by law, without conversion fees. Holders receive economic exposure but do not obtain voting rights associated with direct share ownership.

Demand for bStocks rose quickly after launch. By August the product had reached roughly $610.6 million in value, placing it among the larger tokenized stock offerings tracked at the time.

Operational Details and Risk Framework

Binance will assign eligible delta-neutral accounts, including Ethena’s, lower priority for automatic deleveraging. This adjustment supports the stability of the systematic hedging strategy.

USDe’s backing model has evolved beyond its original crypto basis positions. Earlier data showed crypto basis accounting for a small share of the portfolio, with DeFi lending, liquid stablecoins, and tokenized real-world assets making up larger portions. Institutional lending facilities have also been added. The new equity allocation operates within the approved risk framework, pairing tokenized spot positions with matching perpetual hedges.

Binance has developed both the tokenized spot instruments and the equity derivatives within the same trading ecosystem. The exchange offers access to thousands of U.S. stocks and ETFs for eligible users outside the United States, alongside the bStocks product that enables around-the-clock trading and on-chain transferability for supported tokens.

USDe supply stood at approximately $4.9 billion at the time of the announcement. The addition of equity basis trades provides Ethena with another liquid market in which to run the same delta-neutral approach that formed the foundation of the synthetic dollar.