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    Wintermute to take Ethena’s USDe as trading margin

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    Trading firm Wintermute is now accepting USDe, a cryptocurrency-backed stablecoin, as collateral for crypto and derivative trades. Users can employ USDe as a hedge for various trades, including options and credit default swaps. USDe joins Bitcoin, Ether, Solana, and the US Dollar Coin on Wintermute’s list of acceptable crypto collateral, catering to a rising trend of using cryptocurrency as trade collateral. Stablecoins and other tokens tied to US assets are gaining importance in trade transactions, with the stablecoin market cap surpassing $170 billion in 2024. Since its February launch, USDe’s circulating supply has surged to over $2.6 billion.

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    Wintermute, a trading firm, stated on October 25, they are now accepting USDe, a stablecoin backed by cryptocurrency, as collateral for crypto and derivative trades. Customers can use USDe as collateral for different trades, such as options, credit default swaps and forward and spot trading, according to a post by the company on the X platform.

    USDe is now part of the accepted list of crypto collateral by Wintermute, joining Bitcoin (BTC), Ether (ETH), Solana (SOL) and the US Dollar Coin (USDC). There’s been a trend recently of trading platforms and regulators starting to accept cryptocurrency as collateral for trades.

    Collateral, or “margin”, is often required by traders to secure trades until they are completed. Clearinghouses manage these margin deposits and constantly update the trading accounts. Stablecoins, along with other tokens tied to US dollar assets, are starting to become essential for trading and payments.

    The use of stablecoins hit a new high in 2024, leading to a total market capitalization over $170 billion. Last week, payment processing giant Stripe bought stablecoin platform Bridge for $1.1 billion. Another example of stablecoins in use is the PayPal USD (PYUSD), which was launched in 2023 and has since been used to for corporate payments.

    Just since its launch in February by Ethena Labs, USDe’s circulating supply has soared to more than $2.6 billion, but it still lies far behind market leaders Tether (USDT) and USDC, both boasting market capitalizations around $120 billion and $34 billion, respectively.

    Ethena Labs gives users the ability to mint USDe against a variety of tokens that include BTC, ETH, liquid staking derivatives (LSDs), and other stablecoins. To counterbalance the portfolio’s inherent volatility, Ethena uses offchain financial derivatives.

    Source: Cointelegraph

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