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USDe faces regulatory setback in Europe.

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Written by The Kaiko Research Team

30/06/2025

    Welcome to the Data Debrief!

    Welcome back to the Data Debrief! This week we’re diving into Ethena’s USDe, a stablecoin that’s quickly captured market share and regulatory attention. As global rules tighten and stablecoins become more integrated into mainstream finance, can USDe keep its momentum? We break down the data and the latest headlines.

    • Ethena faces EU setback

    • Stablecoin liquidity shifts

    • Why price methodologies matter

    Chart of the Week

    USDe faces regulatory setback in Europe.

    Since its late 2023 debut, Ethena’s USDe has quickly become the fourth-largest stablecoin by market cap, averaging $560 million in weekly trading volume—on par with established players like DAI.
    However, as USDe adoption has surged, so has regulatory scrutiny. Global regulators remain cautious about yield-bearing stablecoins like sUSDe, concerned that they could accelerate deposit outflows from banks into higher-yielding alternatives. USDe is still excluded from major frameworks such as the U.S. Genius Act, Singapore’s MAS rules, and Hong Kong’s Stablecoin Bill.
    The latest escalation came on June 25, when Germany’s BaFin instructed Ethena GmbH to begin a 42-day wind-down of USDe redemptions in Europe, following a March ban on new issuance over alleged MiCA violations tied to its yield-bearing variant.

    Despite this, the market impact was contained. USDe only briefly depegged against USDT before quickly recovering as arbitrage traders stepped in.

    However, this latest depeg has lingered longer than previous ones, suggesting that the market is taking regulatory developments more seriously.

    Our latest Premium Data Debrief analyzes the market impact of Ethena’s European exit and the implications of growing regulatory scrutiny. For the full story, subscribe here.


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    Data Used In This Analysis

    Our industry-leading research is the direct result of combining our proprietary data with world-class in-house experts. Bringing the very best of Kaiko’s people and data together, we unlock the unique insights that form the basis for our discoveries and analysis. We believe in doing so, our data speaks for itself, helping both our clients and the wider industry get a better understanding of the crypto ecosystem, and the evolving trends and patterns in motion at a regional and global scale.

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