# Ethena Collaborates with Binance to Tokenize Stock Basis for USDe Backing DeFi protocol expands USDe collateral with Binance's tokenized stocks and equity perpetuals. - **Source:** [CryptoPotato](https://brifing.si/source/bd22636b-ec8d-42a8-8cca-1937c50e0f6c) - **Published:** 2026-09-25 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/a343686a-1f07-464c-abc7-fc9393b374c8 ## Partnership expands USDe collateral Ethena has partnered with Binance to back its USDe stablecoin with tokenized stocks, using Binance's bStocks and shorting matching equity perpetuals. This marks the first extension of Ethena's basis trade into equity perpetuals, significantly broadening the potential collateral market. The move follows Ethena's established model of holding spot assets and shorting perpetuals to capture funding rates, previously applied to BTC, ETH, and SOL. ## Binance's equity basis performance Binance's equity basis has delivered approximately 11% annualized returns over the past six months, according to Ethena. The exchange offers favorable terms for delta-neutral accounts like Ethena, including lower priority in auto-deleveraging events. Ethena estimates the market opportunity for equity perpetuals could surpass the $15 billion in crypto perpetuals it captured in the previous cycle, indicating significant growth potential for this new collateral approach. ## Approval framework for bStocks The bStock allocation follows criteria established by Kairos Research for Ethena's Risk Committee. Assets must show $25 million in perpetual open interest over 14 days, have 30 days of funding history, and have matching tokenized stocks on the same exchange. Of Binance's 67 pairs, 17 qualified including Nvidia, Tesla, and SpaceX, representing $2.14 billion of the $2.9 billion measured across four exchanges. ## Performance metrics of hedged positions Analysis of 37 earnings events showed underlying stocks moved 9.9% on average while the hedged positions only moved 20.3 basis points. However, carry on approved Binance names had halved to about 7% in a month, with two names turning negative. The approval process includes a side letter with issuers due to the unique structure where holders lack proprietary interest in backing shares. ## Binance's market dominance CryptoQuant data reveals Binance handled 76% of the $250 billion in equity perpetual volume traded in July 2026. The exchange's tokenized U.S. equities reached $100 million in assets within two weeks of their June launch, demonstrating rapid adoption. Binance's bStocks represent a significant portion of the tokenized equity market, with $2.14 billion held on its platform. ## USDe supply and collateral history USDe supply peaked at $14.8 billion in October 2025 before this expansion. Ethena previously widened collateral by adding Bitcoin to USDe's backing in April 2024 when supply stood at $2 billion. The ENA token traded at $0.24, up 12% in 24 hours following the announcement, reflecting market optimism about the collateral expansion. ## Risk considerations The bStock approval framework includes specific risk controls due to the unique structure where every contract sits behind a single upgrade key. While the hedged positions show limited movement during earnings events (20.3 bps vs. 9.9% for underlying stocks), the declining carry rates (down to 7% from higher levels) suggest evolving market conditions that Ethena must navigate. ## Market implications This collaboration represents a significant bridge between traditional equity markets and DeFi, potentially opening $2.5 trillion in new collateral opportunities. By applying its proven crypto perpetuals model to equities, Ethena could create new yield opportunities while expanding USDe's utility. The rapid adoption of Binance's tokenized stocks suggests strong market readiness for such innovations. ## Sources covering this story - https://cryptopotato.com/ethena-partners-with-binance-to-back-usde-with-a-tokenized-stock-basis-trade/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._