StablecoinX Goes Public via SPAC Merger, Raises $360M for ENA Treasury

StablecoinX Inc. Emerges from Merger

StablecoinX, a new infrastructure company operating within the Ethena ecosystem, has announced plans to go public through a merger with TLGY Acquisition Corp. The merger will result in the company securing $360 million, which will be used to establish a crypto corporate reserve anchored by the ENA token. Following the merger, the combined entity will be known as StablecoinX Inc. and is set to list its Class A shares on the Nasdaq stock exchange under the ticker symbol “USDE.” The Ethena Foundation will maintain majority voting power in StablecoinX post-merger, with the company offering infrastructure and staking services for the Ethena protocol.

The $360 million private investment in public equity includes $260 million in cash and $100 million in discounted, locked Ethena (ENA) tokens. Notable backers of StablecoinX include the Ethena Foundation, Ribbit Capital, Pantera, Dragonfly, Galaxy Digital, Haun Ventures, and Polychain, among others. Ethena currently ranks as the third-largest onchain stablecoin issuer, with its USDe token holding a market capitalization of approximately $6.1 billion, trailing behind Tether's USDt (USDT) and Circle’s USDC (USDC).

StablecoinX’s Treasury Strategy Unveiled

In a joint press statement released by StablecoinX, TLGY Acquisition Corp., and the Ethena Foundation, details of the ENA treasury strategy were revealed. The strategy involves utilizing the $260 million in cash to purchase locked ENA tokens through a Token Purchase Agreement. Over the next six weeks, the Ethena Foundation will initiate a buyback of ENA tokens on public markets at a rate of approximately $5 million per day, representing nearly 8% of ENA’s circulating supply at current prices. The ultimate goal is for StablecoinX to build a long-term treasury by locking up this supply and refraining from selling the token.

The move to accumulate ENA tokens as a long-term store of value and strategic asset mirrors the approach taken by Bitcoin treasury companies like Strategy with BTC. StablecoinX’s decision to build a reserve of ENA offers shareholders public market exposure to the stablecoin market, aligning with the company’s long-term objectives.