Étienne Girard
M2 Capital, the investment division of UAE-based M2 Holdings, has committed $20 million to Ethena’s governance token (ENA), signaling growing regional appetite for regulated digital asset solutions.
The investment is part of M2’s broader mission to connect global digital asset platforms with the Middle East’s regulated financial sector. Ethena, which launched in early 2024, has already surpassed $14 billion in total value locked (TVL). Its USDe synthetic dollar and yield-bearing sUSDe tokens are gaining strong traction across decentralized finance.
M2 said the deal reflects rising demand among Middle Eastern institutions and wealthy investors for compliant crypto exposure. Through its affiliate M2 Global Wealth, the company plans to integrate Ethena’s products into its wealth management services, enabling clients to access synthetic dollar yields within a secure, regulated framework.
“We are setting a new benchmark for trust, security, and integrity in the digital asset landscape of the region,” said Kim Wong, Managing Director and Head of Treasury at M2.
Ethena’s Growing Role in the Stablecoin Market
Unlike fiat-backed stablecoins, Ethena’s USDe is fully crypto-native, backed by digital asset collateral and supported by delta-neutral hedging strategies. Its sister product, sUSDe, has delivered double-digit annualized returns in 2024, positioning it as a strong alternative to traditional savings options.
“Stablecoins remain the most important instrument in crypto. Building a crypto-native synthetic dollar is not just a challenge but also the largest opportunity in the industry,” said Conor Ryder, Head of Research at Ethena.
UAE as a Global Digital Asset Hub
The UAE — particularly Abu Dhabi — has become one of the fastest-growing global crypto hubs thanks to its comprehensive regulatory frameworks. M2 operates under licenses from both the Abu Dhabi Global Market’s FSRA and the Bahamas’ SCB, giving it a multi-jurisdictional platform to attract international capital.
With Ethena’s synthetic dollar products joining its suite of offerings, M2 is creating new entry points for regional institutions to access DeFi liquidity and yield within a regulated structure.
Broader Investment Activity
This isn’t M2’s first major crypto move in 2024. Earlier this year, M2 Capital backed the Sui Foundation, participating in a $450 million PIPE that helped Nasdaq-listed SUI Group Holdings (formerly Mill City Ventures) establish a new public treasury strategy.
