Standard Chartered initiated coverage on Ethena and projects USDe outstanding to multiply eightfold by end of 2028, reaching approximately 40 billion dollars. The synthetic stablecoin currently circulates around 4.9 billion dollars, down from its peak of 14.8 billion dollars reached on October 1, 2025, before the liquidation cascade of October 10. The British bank bases its bullish scenario on the convergence between DeFi and traditional finance, as well as on the growth of the overall stablecoin market which it forecasts to reach 2 trillion dollars by end of 2028. The USDe model, relying on a delta-neutral strategy combining BTC and ETH holdings with short positions on perpetuals, generates funding revenues ranging from 4% to over 25% annualized depending on market phases. The anticipated growth will need to rely on Asian and offshore markets, as USDe is banned in Germany by BaFin and ineligible for the payment stablecoin status under the US GENIUS Act.
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