EtherFi is launching its own stablecoin.
EtherFi has hinted at plans to launch its own EtherFiUSD stablecoin to be used across its spending card for processing and making everyday payments. It already hosts $300M in stablecoin deposits.
This is in partnership with Ethena using their white-label stablecoin issuance platform. Additionally, MoonPay’s stablecoin infrastructure is selected to power virtual accounts and offramps.
EtherFi announced its latest product features over the summer, including the ability to borrow from Aave lending markets.
Stablecoin Economics
EtherFi’s stablecoin plans are part of a broader trend.
Software, fintech platforms, consumer apps, spending cards, and tools that host a large number of consumers and user engagement are leaning towards issuing their own stablecoins.
They are not seeking to ultimately compete with top stablecoins USDT, USDC, USDG, or even OUSD stablecoin that just went live.
It is rather that the stablecoin economics on the backside of those payments and transfers allow the distributor to gain a revenue share from the underlying interest or yield.
Naturally, the true extent of those are negotiated in the terms with white-label issuers like Ethena.
Why Ethena Does Not See EtherFi’s Stablecoin as a Threat
Interestingly, Ethena’s Founder and CEO Guy commented on the relationship between the two growing companies in the space.
Guy specifically points out that the Total Addressable Market (TAM) for stablecoin neobanks is very big, despite the close similarity to its own product that Ethena is growing.
EtherFi remains in the top 3 stablecoin card providers, although it is not fully stablecoin-based.
EtherFi’s cumulative payment spend volume is nearing the $1B mark according to latest PaymentScan metrics, while EthenaPay just crossed $2M spending volume.
Recently, Ethena launched EthenaPay as it backs the global stablecoin neobank and card thesis.
