Ethena: Abu Dhabi-based government-affiliated fund invests USD 20 million

• According to consistent media reports, M2 Capital—the investment arm of Abu Dhabi-based digital asset group M2—is investing $20 million in the governance token of the stablecoin protocol Ethena. M2 is backed by ADQ (“Abu Dhabi Developmental Holding Company”), an Abu Dhabi sovereign wealth fund.
• The deal reflects growing demand in the Middle East for regulated digital assets, the company said in a statement on Thursday.
• Abu Dhabi-based M2 Holdings plans to integrate Ethena's products into its wealth management offering through its subsidiary M2 Global Wealth. This approach will provide institutional and high-net-worth clients with access to the returns of the synthetic US dollar.
• “We are setting a new standard for trust, security and integrity in the digital asset market in the region,” said Kim Wong, Managing Director and Head of Treasury at M2.
• Ethena's Head of Research, Conor Ryder, explains: “Stablecoins are the most important instrument in the crypto world. Providing a crypto-native synthetic US dollar is not only the biggest challenge in the space, but also the biggest opportunity.”
• The Middle East, and the United Arab Emirates in particular, has become one of the world's fastest-growing centers for digital assets thanks to a comprehensive regulatory framework, according to M2.
• Earlier this year, M2 Capital helped Nasdaq-listed SUI Group Holdings, formerly Mill City Ventures, complete a $450 million PIPE (Private Investment in Public Equity) to launch its SUI Treasury.
• Ethena has recently benefited from various drivers, including the ENA treasury company StablecoinX, the expected interest rate cuts in the US and an upcoming “fee switch”.
• Meanwhile, another exciting stablecoin project was launched: Layer-1 Plasma and its XPL token.

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