Ethena Expands USDe Stablecoin Collateral: BNB Approved, XRP and HYPE Under Review
Ethena just supercharged its synthetic dollar—adding BNB to USDe's collateral options while eyeing XRP and HYPE for potential inclusion.
More Assets, More Problems—Or Solutions?
The move signals Ethena’s push toward broader asset backing, a play for deeper liquidity and wider adoption. BNB’s green light brings immediate utility; XRP and HYPE hanging in the balance suggest the protocol isn’t done growing its reserve arsenal.
Because nothing says 'stable' like backing a stablecoin with notoriously volatile crypto assets—what could go wrong?
Active expansion. Calculated risk. Same old crypto finance story, just with a fresh coat of decentralization.
Ethena’s rules-based approach to stablecoin collateral
The Eligible Asset Framework put forward by Ethena Labs has rigid thresholds that an asset must clear before it can be considered for inclusion in USDe’s collateral basket. These include liquidity, market maturity, and trading depth standards that are designed to minimize risk exposure.
Among the requirements are a two-week average open interest (OI) above $1 billion, with at least $500 million concentrated on a single venue, and daily spot and perpetual trading volumes of over $100 million.
Assets are also expected to have DEEP order books, with spot liquidity of at least $0.5 million within 1% of mid-price and perpetual order book depth above $10 million.
Other safeguards include tight bid-ask spreads, funding rate stability, and evidence of maturity, usually over 12 months of active futures markets.
BNB approved, XRP and HYPE on deck
BNB was announced as the first token outside of the traditional majors to pass the framework and win approval as a backing asset. Meanwhile, XRP and HYPE also satisfied the thresholds but have not yet been formally onboarded.
To arrive at the choice of selected tokens, Ethena ran experiments gathering data from the following tokens: XRP, SUI, HYPE, ADA, and BNB. This was done across three centralized exchanges (CEX), Binance, Bybit, and OKX, and one decentralized exchange (DEX), which is Hyperliquid’s DEX, where HYPE’s liquidity is concentrated.
The tokens were put to test, and made to go through the eligibility criteria, and unlike the tokens that passed, sui and ADA were rejected because they failed key liquidity and OI requirements despite decent volatility.
Ethena also made it clear that the approval under the framework does not guarantee immediate onboarding. Each asset must undergo further risk assessment, with governance input determining the final timeline for integration.
Implications for USDe and the stablecoin market
By expanding its collateral base with BNB and possibly XRP, and HYPE, Ethena’s system may become more resilient while boosting its market appeal. Its USDe has grown to over $11.81 billion in supply, positioning it among the largest stablecoins in circulation.
By applying a rules-based governance process, Ethena is also seeking to build credibility at a time when stablecoin oversight is under increasing scrutiny, with various governments enacting or working on regulatory frameworks governing its issuance and operations.
Ethena’s framework provides transparency to users and regulators alike while setting a precedent for other protocols that might pursue similar synthetic models.
Industry reaction has been cautiously optimistic. Some observers noted that relying on assets like BNB and XRP introduces regulatory risk, given ongoing scrutiny around both tokens. Others highlighted that including HYPE could raise questions about volatility, even if liquidity standards are met.
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