Ethena Labs Partners with The Open Network (TON) to Integrate Its USDe Stablecoin

Ethena Labs is bringing its USDe stablecoin and Staked USDe (sUSDe), rebranded as tsUSDe, to Telegram’s ecosystem, aiming to reach over one billion users with dollar-denominated savings, payments, and DeFi applications. The integration, announced at Token2049 in Dubai on May 1, supports both custodial (Telegram’s native wallet) and non-custodial wallets (e.g., TON Space, Tonkeeper) and is powered by LayerZero’s interoperability protocol.

This move follows Ethena’s 2025 roadmap to expand USDe’s reach and compete with Tether by offering neobank-like services, including potential TON-based debit cards and Apple Pay integration. The partnership has already driven a 3.5% rise in Ethena’s ENA token to $0.033 and a 1.9% increase in Toncoin to $3.22, though TON’s network activity has faced declines since mid-2024.

Major Implications:

Mass Adoption Potential: Telegram boasts over 1 billion users, presenting a unique opportunity for mainstream stablecoin adoption, especially in emerging markets (Asia, Africa, Latin America) where mobile messaging apps enjoy widespread popularity. Non-technical users can now seamlessly access USDe for savings, payments, and DeFi within Telegram, bridging the gap between Web2 and Web3.

DeFi Ecosystem Growth: TON’s DeFi ecosystem gains a major stablecoin with USDe boasting a market cap of $4.7–$6 billion, positioning it third or fourth largest after Tether’s USDT, Circle’s USDC, and sometimes Sky’s USDS. The 10% APY incentive for tsUSDe holders in major TON wallets on balances up to 10,000 tsUSDe, alongside Ethena’s standard rewards, aims to boost liquidity in TON-based DeFi protocols and foster new applications.

Competitive Pressure on Stablecoins: Ethena’s expansion is a direct challenge to Tether (USDT) and Circle (USDC), especially with plans for neobank-like services (e.g., debit cards, Apple Pay) integration. USDe’s synthetic dollar model, if perceived as stable, could erode Tether’s dominance in markets prioritizing accessibility and yield.

Integration Rollout: The partnership will see a phased rollout of tsUSDe support in major TON wallets and integration with TON’s DeFi ecosystem.

Market and Token Impact: The partnership has already lifted Ethena’s ENA token by 3.5% to $0.033 and Toncoin by 1.9% to $3.22. Increased USDe usage on TON could sustain upward pressure on ENA, while TON’s network activity may rebound from its 2024 decline, enhancing Toncoin’s value proposition.

Regulatory and Stability Risks: USDe’s synthetic dollar, reliant on collateral and yield strategies, faces risks of yield compression or instability in volatile markets. Regulatory scrutiny of stablecoins could also intensify, especially as Ethena targets mainstream financial services. TON’s custodial wallet reliance may raise concerns about user control and compliance.

Interoperability and Innovation: LayerZero’s protocol enables cross-chain functionality, potentially setting a precedent for stablecoin integrations across other blockchains. This could accelerate innovation in DeFi and payment systems but introduces technical risks tied to interoperability protocols.

This move could redefine stablecoin accessibility and DeFi on TON, but its success hinges on managing risks and sustaining user trust in USDe’s stability.