FalconX, an institutional cryptocurrency broker, and Ethena, the issuer of the stablecoin $USDe, have announced the launch of a $1 billion lending program. The funds will be used to issue overcollateralized loans to institutional clients. The source of capital will be the assets backing the $USDe stablecoin.
The deal is structured through a special purpose vehicle (SPV). FalconX will be responsible for loan origination, servicing, and collateral management. Loan collateral will be held by qualified custodians. The companies expect this initiative to channel on-chain liquidity into the institutional lending market.
For Ethena, the project represents a new revenue stream, complementing its traditional crypto asset management strategies. The company will provide capital from the reserves backing $USDe, while FalconX will handle lending to institutional clients.
The parties described the project as one of the largest use cases of on-chain capital for collateralized lending to institutional borrowers. The program's volume may subsequently increase in response to growing demand for institutional financing.
Image: Magnific
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