Ethena is moving part of the hedging strategy behind its USDe synthetic dollar into tokenized U.S. equities, pairing bStocks spot positions with short equity perpetual futures on Binance. The structure is designed to capture the gap between spot and derivatives pricing while limiting exposure to moves in the underlying shares, extending a model Ethena has already used in cryptocurrency markets.
Ethena said its risk committee had previously approved a framework for allocating to tokenized-equity basis trades. USDe’s supply stands at about $4.9 billion, according to Ethena, placing the new allocation within a much larger collateral and hedging system built around a dollar-pegged token rather than a conventional reserve of cash and short-term government securities.
The approach gives Ethena access to another derivatives market whose funding and basis conditions may differ from those in crypto. It also ties part of USDe’s risk management more closely to Binance’s tokenized-equity products and its equity perpetual futures market, where liquidity, funding payments and the ability to maintain hedges will determine whether the strategy performs as intended.
How the equity basis structure works
The trade uses bStocks as the spot, or long, side of the position and equity perpetual futures as the offsetting short side. A perpetual future is a derivatives contract without a set expiry date. Traders holding long or short positions periodically exchange funding payments, which are designed to keep the futures price close to the value of the referenced asset.
By holding tokenized stock exposure and shorting a corresponding perpetual contract, Ethena aims to keep the combined position delta neutral. Delta neutral means the portfolio is structured so that broad price moves in the underlying equity should have a limited directional effect on the total position: a gain on the spot asset would generally be offset by a loss on the short future, and vice versa.
The potential return comes from the basis, the difference between the spot price and derivatives pricing, as well as funding payments when market conditions favor the short side of the perpetual trade. Ethena reported that the equity basis averaged 3.56% on an annualized basis during the preceding six months. That figure describes past market conditions rather than a fixed return, and it can change rapidly when demand for leveraged long or short exposure shifts.
Ethena also reported more than $2.9 billion in open interest across the equity perpetual futures market referenced in its update. Open interest measures the total value of active derivative positions and offers a rough gauge of the market available for entering and closing hedges. The firm said open interest had grown at a 105% compound monthly rate during the year.
Fast growth can expand the pool of potential counterparties, but it can also leave newer markets vulnerable to abrupt funding-rate reversals and thinner order books during sharp moves. A basis strategy depends less on correctly predicting whether a stock will rise or fall than on being able to maintain both legs of the hedge under changing market conditions.
bStocks add tokenized securities to the collateral mix
bStocks represent an interest in securities held by their issuer, BTech Holdings Limited. According to the product description, eligible holders can convert the tokens into the underlying securities on Binance, subject to applicable laws and restrictions.
That legal and operational structure differs from a token that simply tracks a stock price through an index or a synthetic derivative. The token’s relationship with the underlying shares depends on the issuer’s custody, redemption process and compliance controls, while the perpetual future is a separate derivatives instrument whose pricing depends on trading activity in the futures market.
Ethena’s strategy therefore adds several layers to USDe’s existing collateral framework: the tokenized equity instrument, the issuer holding the underlying security, the trading venue supporting conversion and futures activity, and the derivatives market needed to keep the trade hedged.
The model can work only while the relationship among those parts remains functional. A disruption in token conversion, a widening gap between token and stock prices, a shortage of borrow or liquidity in the perpetual market, or unusually high funding costs could weaken the economics of the position. A delta-neutral setup also does not remove counterparty, operational or liquidity risk.
Binance’s equity products supply the trading venue
Binance opened trading in more than 7,000 U.S.-listed stocks and exchange-traded funds for eligible users outside the United States in June, according to the company’s announcements, and introduced bStocks later that month. The platform had already added USDe across parts of its services last year, including support for its use as collateral in futures and perpetuals trading.
That integration gives Ethena a route to place the collateral and hedge on the same platform, which could reduce the operational complexity of moving assets between venues. It also concentrates execution and platform exposure in one ecosystem, making the reliability of Binance’s spot, token-conversion and derivatives infrastructure central to the strategy.
The expansion reflects the increasing overlap between tokenized real-world assets and crypto-native trading structures. Tokenized equities can be used as spot collateral, while perpetual futures provide a familiar mechanism for hedging and funding-rate trades. For Ethena, the attraction lies in adding a potential source of basis income beyond crypto markets without taking an outright view on the direction of individual U.S. stocks.
The result will depend on whether equity perpetual markets can sustain sufficient depth and orderly pricing as participation grows. Ethena’s reported 3.56% average annualized basis offers a snapshot of recent conditions, but the strategy’s practical returns will be shaped by funding volatility, trading costs, hedge execution and the ability to redeem or manage the tokenized stock collateral when markets are under pressure.
Curious about tokenized stocks like Ethena’s USDe strategy? Explore how they work in our guide on tokenized equities.
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