Ethena nets $20m investment from M2 amid $14.5b TVL surge

Ethena leverages its surge toward $15 billion in total value locked to secure a strategic $20 million investment from M2. The capital infusion arrives as the protocol seeks to cement its status as a dominant force in the synthetic dollar landscape.

According to an announcement on Sept. 25, M2 Capital, the proprietary investment arm of the UAE-based M2 Holdings conglomerate, has acquired a $20 million position in Ethena’s ENA token, which has grown rapidly since its launch in 2024.

The move is paired with plans to integrate Ethena’s synthetic dollar products directly into the offerings of M2 Global Wealth Limited, the group’s wealth management affiliate, creating a regulated channel for client exposure.

Ethena currently powers USDe, a crypto-native stable asset, and sUSDe, its yield-bearing variant, both supported by a hedging structure that has pushed the protocol’s total value locked to nearly $15 billion, according to DefiLlama data .

M2’s bet on Ethena

M2 highlighted Ethena’s unique proposition as a yield-generating synthetic dollar. In a region with a strong preference for dollar-denominated assets, Ethena’s USDe and its staked version, sUSDe, offer a compelling alternative to traditional finance.

The protocol’s delta-neutral hedging strategy, which aims to provide stability while capturing yield from staking and derivatives, has proven capable of generating double-digit returns, which M2 claimed reached 14% earlier this year.

The investment also aligns with M2’s track record of backing projects it sees as foundational, following earlier commitments to Sui Foundation and Nasdaq-listed Sui Group Holdings. Kim Wong, Managing Director and Head of Treasury at M2 Holdings, underscored the strategic nature of the move.

“M2’s investment in Ethena marks another important step forward for the Middle East’s most sophisticated digital asset investors. By combining access to exclusive products with a regulated, institutional framework, we are not only broadening access to unique opportunities, but also setting a new benchmark for trust, security, and integrity in the region’s digital asset market,” Wong said.

Ethena’s momentum

M2’s investment also comes at a moment when Ethena’s momentum is unmistakable. Just a week earlier, YZi Labs, linked to Binance founder Changpeng Zhao, increased its own stake in the protocol to support its expansion on the BNB Chain and the development of new products.

Institutional money following one another into the same project underscores a growing consensus around Ethena’s design and market role. Notably, the protocol’s financials highlight why interest is building.

According to DefiLlama, Ethena has generated a staggering $666.82 million in fees over the past year. Its recent quarterly performance shows significant scale, with Q3 2025 fees reaching $137.67 million. While revenues and earnings of $9.76 million in Q3 are notably lower than the peak of $26.96 million seen in Q4 2024, the consistent high fee generation demonstrates substantial and sustained user demand for its core services.