M2 Capital Invests $20M in Ethena as TVL Approaches $15B

M2 Capital, the investment arm of UAE-based M2 Holdings, invested $20 million in ENA, the governance token for Ethena, a crypto-native synthetic dollar protocol built on Ethereum.

M2 Holdings, a conglomerate with digital asset exposure across custody, investment and wealth management, plans to integrate Ethena (ENA) products into client offerings through its affiliate, M2 Global Wealth Limited, according to a Thursday announcement.

“M2’s investment in Ethena marks another important step forward for the Middle East’s most sophisticated digital asset investors,” said Kim Wong, managing director and head of treasury at M2 Holdings.

Ethena joins M2’s growing list of strategic bets, which include its earlier investment in Sui (SUI) Foundation and support for Nasdaq-listed SUI Group Holdings through a private investment in public equity (PIPE) deal.

Ethena’s TVL nears $15 billion

The announcement comes as Ethena’s total value locked (TVL) climbed to almost $14.5 billion, according to DefiLlama data. Over the past year, the protocol has generated $666.82 million in fees, with $32.32 million in revenue and earnings.

Ethena TVL reaches $14.5 billion. Source: DefiLlama

Ethena’s design combines crypto-backed collateral with delta-neutral hedging strategies, aiming to deliver a price-stable stablecoin (USDe) and a yield-generating version (sUSDe) for users.

According to its website, Ethena’s yield-bearing asset sUSDe is offering an annual percentage yield (APY) of 6%, down from its 2024 average of 19%. The project has attracted over 811,000 users across 24 blockchain networks.

Cointelegraph reached out to M2 Holdings for comment, but had not received a response by publication.

YZi Labs boosts investment in Ethena

Last week, Changpeng “CZ” Zhao-linked investment firm YZi Labs increased its investment in Ethena to support the stablecoin’s expansion. The move will help scale USDe on BNB Chain and accelerate development of USDtb, a treasury-backed stablecoin, and Converge, Ethena’s institutional settlement layer for tokenized real-world assets.