Abu Dhabi-based M2 Capital has announced a $20 million investment in Ethena, a fast-growing decentralised finance (DeFi) protocol, in a deal that underscores the Middle East’s ambition to become a global hub for digital assets.

The investment comes at a time when regional demand for safe and regulated access to crypto products is rising and institutional players are stepping deeper into the digital economy.

Ethena has become one of the most closely watched protocols in DeFi since its public launch in early 2024.

The network issues USDe, a synthetic dollar backed by crypto collateral and stabilised through delta-neutral hedging, alongside sUSDe, a yield-bearing version that distributes rewards from staking and derivatives.

It has also rolled out iUSDe, a product tailored for institutional investors.

Notably, Ethena’s appeal lies in its ability to merge stability with performance.

While USDe offers the predictability of a dollar-pegged asset, sUSDe has delivered double-digit returns in bullish 2025 conditions, with reports of annual yields reaching up to 20%.

This blend has attracted both retail and institutional investors, helping Ethena accumulate more than $14 billion in total value locked within just over a year.

For M2 Capital, the investment marks a continuation of its shift from running a crypto exchange to operating a digital asset wealth management platform.

The firm, an affiliate of M2 Holdings, now serves wealthy individuals, family offices, and institutions that want access to the digital asset market under regulated structures.

Its services extend to custody, yield products, liquidity management, and treasury optimisation.

By committing to Ethena’s governance token, ENA, M2 Capital is not only making a financial bet but also positioning itself as a trusted gateway to exclusive digital opportunities.

In the announcement, earlier today, executives said the integration of ENA into wealth management is meant to combine compliance with innovation and to broaden access to sophisticated crypto products for clients across the region.

The UAE has become one of the most progressive jurisdictions in digital asset regulation.

This regulatory clarity has made the country an attractive base for digital asset companies, and the Ethena deal adds weight to the UAE’s positioning as a financial hub for the industry.

Kim Wong, M2’s Managing Director and Head of Treasury, described the move as a significant step forward for the Middle East’s most sophisticated investors.

He said the deal sets a new benchmark for trust, security, and integrity in the region’s digital asset market.

Ethena’s Head of Research, Conor Ryder, added that stablecoins are the single most important instrument in crypto, framing the creation of a crypto-native synthetic dollar as both the biggest challenge and the biggest opportunity in the sector.

At the time of the announcement, Ethena (ENA) cryptocurrency was trading around $0.58, with a market capitalisation of about $4 billion and a daily trading volume of $375 million.

And despite being down more than 60% from its all-time high of $1.52 in April 2024, the token remains up more than 85% year-on-year and nearly 200% from its all-time low recorded in September 2024.

The timing of M2’s investment aligns with broader momentum around Ethena.

Earlier in September, ArkStream Capital invested $10 million in ENA, while Mega Matrix Inc. filed a $2 billion shelf registration with the US Securities and Exchange Commission (SEC), signalling plans to acquire governance tokens like ENA.

Binance has also reported strong adoption, with its USDe Earn product crossing $2 billion in deposits within four days of launch.

USDe on Binance has crossed $2b in 4 days since USDe Earn went live

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