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- M2 Capital invests $20M in Ethena ENA to link Middle East finance with digital assets

- Ethena hits $14B deposits as M2 Global Wealth integrates USDe, sUSDe, and iUSDe into offerings

%M2Capital Limited, the investment arm of UAE-based M2 Holdings, has allocated $20 million to Ethena's governance token ENA. The move serves as a broader strategy to link regulated financial services in the Middle East with emerging digital asset infrastructure. It comes at a time when the region is strengthening its position in global finance through regulatory and institutional support for cryptocurrency adoption.

https://x.com/M2Exchange/status/1971139375061967137

%EthenaLabs operates a synthetic dollar protocol that issues (CRYPTO: $USDe ), a collateral-backed asset designed to replicate %Stablecoin functionality, and sUSDe, a yield-bearing version distributed through derivatives and staking returns. Both are supported by crypto collateral and hedging mechanisms intended to reduce volatility.

Launched in 2024, the protocol has already attracted more than $14 billion in deposits. Data shows ENA's market capitalization is approximately $4 billion, while its daily trading volume sits near $375 million. The network recently introduced iUSDe, a variant designed for institutional clients, aiming to extend participation from traditional capital markets into decentralized finance.

Integration Into Wealth Management

M2 Global Wealth, an affiliate of M2 Holdings, will integrate Ethena into its wealth management platform. According to statements from the company, this initiative provides clients with regulated access to digital asset yields and liquidity services. Kim Wong, head of treasury at M2 Holdings, described the investment as a step that strengthens trust and security standards in the region's market environment.

By incorporating Ethena into its offerings, M2 aims to position digital asset exposure alongside established wealth products, aligning with ongoing regulatory efforts in the UAE to attract crypto firms and investors.

M2's $20 million investment follows its earlier participation in a funding effort for the Sui blockchain ecosystem. Other institutional actors have also entered the Ethena market in recent months. ArkStream Capital invested $10 million earlier this month, and U.S.-listed Mega Matrix Inc. filed a $2 billion universal shelf registration with the Securities and Exchange Commission, signaling potential accumulation of governance tokens such as ENA.

Adoption has also been supported by exchanges. Binance recently reported more than $2 billion in deposits for its USDe Earn product within four days of launch, underscoring demand for yield-bearing stablecoin alternatives.