M2 Capital Limited, the proprietary investment arm of UAE-based M2 Holdings, has announced a $20 million strategic investment in Ethena ($ENA), the governance token powering the Ethena protocol. Ethena underpins USDe, a crypto-native synthetic dollar, and sUSDe, its yield-bearing counterpart. Since its launch in early 2024, Ethena has achieved over $14 billion in total value locked (TVL), reflecting rapid adoption of its “stablecoin-plus-rewards” model.
This investment follows M2 Capital’s recent backing of the Sui Foundation, further signaling the company’s expanding role in supporting global blockchain ecosystems and its commitment to pioneering digital asset opportunities.
Strategic Integration of Ethena into M2 Global Wealth
Through its affiliate M2 Global Wealth Limited (M2GWL), M2 Holdings will integrate Ethena’s offerings into its regulated wealth management platform. The move strengthens M2’s positioning as a trusted gateway to exclusive digital asset products, combining regulatory oversight, regional expertise, and innovative financial solutions to unlock long-term growth in this emerging asset class.
Kim Wong, Managing Director and Head of Treasury at M2 Holdings, commented:
“M2’s investment in Ethena marks another important step forward for the Middle East’s most sophisticated digital asset investors. By combining access to exclusive products with a regulated, institutional framework, we are not only broadening access to unique opportunities, but also setting a new benchmark for trust, security, and integrity in the region’s digital asset market.”
Ethena’s Crypto-Native Advantage
Ethena’s design merges stability with yield:
- USDe is backed by crypto collateral and maintained through delta-neutral hedging, ensuring resilience against volatility.
- sUSDe allows holders to earn staking rewards and derivative yields, with returns reaching 14% in 2025 market conditions, outpacing traditional savings products.
Conor Ryder, Head of Research at Ethena, highlighted the significance of this approach:
“Stablecoins are the single most important instrument in Crypto. Providing a Crypto-native synthetic dollar is not only the largest challenge in space but the largest opportunity.”
Driving Middle East Digital Asset Innovation
With the UAE emerging as one of the world’s leading digital asset hubs backed by a robust regulatory framework, M2’s regional influence provides a strategic bridge for Ethena’s adoption across the Middle East. This partnership will enhance client access to regulated custody, yield products, liquidity solutions, and treasury management, accelerating digital asset adoption in the region.
Supported by institutional shareholders and licensed by both the Financial Services Regulatory Authority (FSRA) in Abu Dhabi Global Market (ADGM) and the Securities Commission of The Bahamas (SCB), M2 Holdings continues to build a multi-regulated, globally aligned platform that delivers institutional-grade governance and innovation.
