Ethena Labs has announced an agreement on a redemption plan for USDe stablecoin holders with the German financial regulator BaFin, concluding a four-month conflict.
Redemption Plan for USDe by Ethena GmbH
The German financial regulator BaFin has initiated a 42-day redemption process for USDe holders. Claimants must submit their requests by August 6 directly to Ethena GmbH. The process will be supervised by a special representative appointed by BaFin.
Conflict with BaFin and Consequences
The conflict between Ethena GmbH and BaFin began when the regulator prohibited the company from publicly offering USDe due to violations of the EU’s Markets in Crypto-Assets Regulation. Sanctions included freezing USDe reserves and shutting down the company’s website.
Future Plans of Ethena Labs
After the redemption plan is fully implemented, Ethena GmbH will have no outstanding issues related to USDe-related operations. However, the company did not clarify its intentions to re-enter the EU and EEA markets.
The approval of the redemption plan and the resolution of the conflict with BaFin signal a potential reevaluation of Ethena Labs' future in Germany and European financial markets.
