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BaFin Freezes Ethena GmbH's Asset Reserves over USDe Token Deficiencies Under MiCA
Germany's financial regulator, BaFin, has identified significant deficiencies in Ethena GmbH’s approval process for its USDe token. As a result, BaFin has implemented immediate supervisory measures, including a ban on publicly offering the token and an order to freeze the company’s asset reserves held by depositary agencies. BaFin suspects that Ethena GmbH has been offering securities in Germany without an approved prospectus. Additional regulatory actions, including a potential ban on these offerings, are being considered.5.4 Billion USDe Tokens Circulate GloballyEthena GmbH, based in Frankfurt am Main, issues the USDe token, classified as an asset-referenced token under the Markets in Crypto-Assets Regulation (MiCA). The company uses various crypto assets and an algorithmic hedging strategy to maintain parity with the US dollar.Under MiCA’s transitional rules, issuers of asset-referenced tokens can operate while awaiting regulatory approval. Ethena GmbH had applied for approval but began issuing USDe in Germany before receiving it.
Germany's financial regulator, BaFin, has identified significant deficiencies in Ethena GmbH’s approval process for its USDe token. As a result, BaFin has implemented immediate supervisory measures, including a ban on publicly offering the token and an order to freeze the company’s asset reserves held by depositary agencies.
BaFin suspects that Ethena GmbH has been offering securities in Germany without an approved prospectus. Additional regulatory actions, including a potential ban on these offerings, are being considered.
5.4 Billion USDe Tokens Circulate Globally
Ethena GmbH, based in Frankfurt am Main, issues the USDe token, classified as an asset-referenced token under the Markets in Crypto-Assets Regulation (MiCA). The company uses various crypto assets and an algorithmic hedging strategy to maintain parity with the US dollar.
Under MiCA’s transitional rules, issuers of asset-referenced tokens can operate while awaiting regulatory approval. Ethena GmbH had applied for approval but began issuing USDe in Germany before receiving it.
