Ethena Shuts Down in Germany Amid Regulatory Scrutiny Over USDe Stablecoin

Synthetic stablecoin issuer Ethena Labs has ceased operations in Germany, following regulatory concerns from BaFin regarding its USDe stablecoin product. The move follows a March order by the German regulator to halt all minting and redemption of USDe, citing legal and securities law violations. 10 euro-pegged and five dollar-pegged stablecoins have received MiCA approvals since the regulation’s inception in late 2024, while Tether chose not to pursue licensing.