Ethena launches Ethena Pay app on Avalanche, offering up to 6% yield and 10% cashback

Ethena Labs, the team behind the "synthetic dollar" USDe, is expanding into the payments business with the beta launch of a new app called Ethena Pay.

The self-custodial money app is built on Avalanche and offers payment services and rewards on user balances. Ethena founder Guy Young told The Block that Ethena Pay is the first neobanking app vertically integrated with a stablecoin issuer's own product, rather than relying on USDC or USDT.

The app lets users hold Ethena's USDe as a dollar balance. Users can also receive fiat through International Bank Account Number (IBAN) details or crypto directly into their wallet, with funds arriving as USDe in both cases. They can also send funds to external bank accounts, where withdrawals settle in the recipient's local currency, Ethena said.

"Financial services today remain fragmented between fiat and crypto ecosystems," Young said. He said the app was designed to bring crypto into everyday financial activity.

Users can make "instant" global transfers through a username or tag without paying a transfer fee, Ethena said. USD, EUR, and GBP bank transfers are also free, while other bank transfers carry fees of between 0.05% and 0.1%, Ethena added.

Rewards and card

Ethena Pay offers three membership tiers. Standard is free, while Pro can be unlocked by locking $2,000 worth of Ethena's ENA tokens or referring 10 users. VIP requires users to lock $10,000 in ENA or refer 50 users.

Standard users can earn 5% APY on balances of up to $5,000. Pro and VIP users can earn 6% on balances of up to $15,000 and $50,000, respectively. Young said USDe's rate funds the savings yield, while the funding source for the rest of the rewards is not being disclosed.

The new Ethena Pay Card offers cashback of 4% for Standard users, 4.5% for Pro users and 5% for VIP users, paid in Avalanche's AVAX tokens. Pro and VIP users can also receive cashback of up to 5% and 10%, respectively, at selected brands including Uber, Spotify and Claude, Ethena said.

The beta app is available on iOS and Android, with access opening in stages across 48 countries, including Brazil, Mexico, South Africa, Kenya, the Philippines, Singapore, Japan, the United Arab Emirates, and Australia. Iron, a stablecoin infrastructure firm acquired by MoonPay in 2025, provides backend infrastructure support for the app.

The United States and European Union are not included in the initial rollout. Ethena expects to add them, along with Canada, Taiwan and South Korea, during the beta, subject to local regulatory requirements.

Asked what regulatory approvals or licenses Ethena Pay currently has and in which jurisdictions, Young did not provide details, saying the information will be viewable in public documentation this week.

Avalanche focus

Ethena Pay is built exclusively on Avalanche, Young said. Asked why Ethena chose Avalanche, he said the companies are aligned around "building for businesses" and providing invisible infrastructure for financial products. He also pointed to Avalanche's early work with Rain cards.

The launch comes as USDe's circulating supply stands at about $4 billion, down from a peak of about $15 billion in September 2025. Unlike fiat-backed stablecoins such as USDT and USDC, USDe uses a portfolio of backing assets and derivatives positions designed to offset changes in their value and maintain its dollar peg.

Ethena's expansion into consumer payments also follows regulatory scrutiny in Europe. German regulator BaFin ordered Ethena GmbH to wind up its USDe business in June 2025 after the company withdrew its application for authorization under the European Union's crypto rules.

Ethena said it plans to add new countries, currencies, and features each week during the beta of the payments app.