StablecoinX, a new infrastructure company within the Ethena ecosystem, has announced a merger with TLGY Acquisition Corp. to raise $360 million to establish a corporate crypto reserve.
Merger and Financing
After the merger, the combined company will be called StablecoinX Inc. and plans to list its Class A shares on Nasdaq under the ticker 'USDE'. The new company will provide infrastructure and staking services for the Ethena protocol, while the Ethena Foundation will retain majority voting power in StablecoinX post-merger.
The deal includes a $360 million private investment in public equity, with $260 million in cash and $100 million in locked Ethena (ENA) tokens, the protocol's native token.
ENA Reserve Strategy
In a statement, StablecoinX, TLGY Acquisition Corp., and the Ethena Foundation announced that starting now, $260 million in cash will be used to buy locked ENA tokens via a Token Purchase Agreement. The Ethena Foundation will initiate a buyback of ENA tokens on public markets over the next six weeks of approximately $5 million a day, representing nearly 8% of ENA’s circulating supply at current prices.
StablecoinX aims to build a long-term treasury by locking up this supply and never selling the token.
Regulation and New U.S. Legislation
The impending Nasdaq debut of StablecoinX comes as U.S. policymakers move towards clearer regulation of stablecoins. Members of the U.S. House of Representatives passed several pieces of crypto legislation, including a stablecoin bill that establishes reserve requirements and regulatory oversight for issuers, finally giving dollar-backed digital assets a formal legal framework in the U.S. The stablecoin bill was signed into law, paving the way for future developments in the sector.
The merger of StablecoinX with TLGY Acquisition Corp. opens new avenues for the development of the Ethena protocol and strengthens its position in the stablecoin market amidst changing regulatory landscapes in the U.S.
