- Bafin prohibited Ethena GmbH’s offer due to significant defects found in the admission procedure.
- Ethena Labs assures that Usde is still redeemable worldwide through its company based on the BVI.
The crucial step comes from the German financial supervisory authority Bafin, which has just imposed a ban against Ethena GmbH, the German subsidiary of Ethena Labs.
Reason: “Serious defects found in the approval process”.
The measure means that ethena GmbH is no longer allowed to offer stablecoin Usde in Germany.
Etena Labs reacted quickly and explainedthat the ban has no influence on the embossing or the redemption process of Usde worldwide. Counting and redemption activities can still be handled normally via the ethena (BVI) based on the British virgin islands.
Since its inception, Ethena has been exploring various options and jurisdictions when it comes to regulatory frameworks globally that would be conducive to our business, and as a result we have multiple entities within our structure facilitating minting and redemption. A MiCAR…
— Ethena Labs (@ethena_labs) March 21, 2025
So there are no drastic changes for users who are used to shaping it via the platform. The assets are also certain – nothing is frozen, and everything is still available for redemption.
In the meantime, according to this message, ENA is traded at around $ 0.3587, corrected by 1.61% in the last 24 hours and 3.08% in the last 7 days.
Despite record withdrawals, Usde keeps his balance
On the other hand, this drama only comes a few weeks after Utde has set up a repayment record. According to a CNF report, the StableCoin recorded reduction of $ 268 million in early March. This number reduced the circulating offer by 4.7 %.
Interestingly, the price of Usde remained stable despite the high return figures. There were no strong rashes or even declines.
New project: Ethena introduces Converge with securitize
Apart from all of this, a cooperation with Securitize was entered into on March 17th to start a new blockchain project called Converge. It is Ethereum-compatible and was specially developed to connect Tradfi and Defi.
Converge will later enable institutional investors to access defi products safely and scalable. The first partners who are willing to join are Pendle, Avara, Ethereeal, Morpho and Maple Finance. One can say that this project is gone to remain relevant in the middle of the regulatory storm.
A German ban does not mean the end for Usde
The ban on an offer in a region is not a little thing, especially in an EU country, but also not the downfall. Imagine that you should no longer sell coffee in a shop, but you still have dozens of other shops in the next city. This is exactly what happened to Ethena.
Bafin has banned Usde, although its global activity continues to exist. For most users of the mint, companies on the BVI are actually the “main route.” This means that although Ethena GmbH had to accept a heavy blow. Usde as a whole did not get into the red zone.
Now of course the question arises: Will other authorities follow the example of BaFin? Or do we just wait and see whether Ethena can improve and remedy the defects classified as “serious” by the German supervisory authority? At the moment you keep calm and explained that you would revise your terms and conditions in the near future.
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