Ethena Pay, a self-custodial neobank app built on Avalanche, is now in beta across 48 countries, offering USDe-denominated savings with up to 6% APY and AVAX cashback, but remains unavailable in the U.S. and EU pending regulatory approval
Ethena Labs has expanded its stablecoin-focused business with the launch of Ethena Pay, a self-custodial neobank app now in beta across 48 countries. The app, available on both iOS and Android since September 1, is built on the Avalanche blockchain and aims to combine savings, card payments, and cross-border transfers in a single platform. All balances are denominated in USDe, Ethena's synthetic dollar token, which had a circulating supply of about $4 billion at launch. Users can fund their accounts via IBAN bank transfers or by sending cryptocurrency directly to their in-app wallet, with all incoming funds converted to USDe. Outgoing transfers to external bank accounts are settled in the recipient's local currency.
Membership Tiers and Rewards
Ethena Pay introduces a three-tier membership system that determines both savings rates and card cashback. Standard membership is free and pays 5% APY on balances up to $5,000. Pro membership, which requires either locking $2,000 in ENA tokens or referring 10 users, offers 6% APY on up to $15,000. VIP status, unlocked by locking $10,000 in ENA or referring 50 users, extends the 6% APY to balances up to $50,000. The base yield is funded by USDe's protocol mechanisms, but Ethena has not disclosed the source of additional rewards above the base rate. Card spending earns cashback in Avalanche's AVAX token: 4% for Standard, 4.5% for Pro, and 5% for VIP members. Pro and VIP users can also receive up to 5% and 10% cashback, respectively, at select partner brands such as Uber, Spotify, and Claude. Instant, fee-free transfers between users are available, while USD, EUR, and GBP bank transfers are also free; other currencies incur a fee between 0.05% and 0.1%.
Infrastructure and Geographic Scope
The app relies exclusively on Avalanche for settlement, custody, and payments, reflecting Ethena's stated goal of integrating stablecoin issuance directly with consumer financial services. Iron, a stablecoin infrastructure provider acquired by MoonPay in 2025, supplies backend support. The beta covers a wide range of countries in Latin America, Africa, Asia, and Australia, but notably excludes the United States, European Union, Canada, Taiwan, and South Korea at launch. Ethena Labs says it plans to expand into these markets during the beta phase, pending local regulatory approvals. The company has not yet published details on its licensing status, stating that further documentation will be released soon.
Regulatory and Market Context
Ethena Pay's launch follows regulatory setbacks in Europe. In June 2025, Germany's BaFin ordered Ethena GmbH to halt USDe operations after the company withdrew its application under the EU's crypto regulatory framework. Despite these challenges, the announcement of Ethena Pay's beta coincided with a 9% increase in the ENA token price, while the broader crypto market remained flat. USDe's circulating supply has declined significantly from a peak of around $15 billion in September 2025 to $4 billion at the time of the app's launch, reflecting shifting demand and regulatory headwinds.
According to EgonCoin, Ethena Pay's beta began with 400 early-access users and is currently not available to U.S. residents. The app's structure-combining stablecoin-denominated savings, card rewards, and cross-border payments-positions it as a competitor to both traditional neobanks and crypto payment platforms, but its long-term adoption will depend on regulatory outcomes and user demand in key markets.
Stablecoins like USDe are designed to maintain a value pegged to the U.S. dollar, but their mechanisms and risk profiles vary widely. Synthetic stablecoins such as USDe typically use a combination of crypto collateral and algorithmic controls rather than direct fiat reserves. This structure can introduce additional risks, including depegging during periods of market stress or protocol failure. Users considering stablecoin-based savings or payment products should understand the underlying mechanisms, redemption conditions, and regulatory environment, as well as the difference between advertised yields and realized returns.
