Key Notes
- Standard Chartered targets $2 for ENA by the end of 2028.
- The bank projects $40 billion in USDe supply over the same period.
- ENA buybacks depend on USDe supply milestones and net revenue.
Standard Chartered has initiated coverage of Ethena’s ENA token with a $2 price target for the end of 2028, linking its outlook to growth in synthetic dollars and token buybacks. In a September 30 research report shared by Ethena, analyst Geoffrey Kendrick projects a roughly sevenfold increase from the report’s $0.28 reference price.
The bank expects USDe supply to reach $40 billion by end-2028, up from the $4.9 billion cited in its analysis. That forecast depends on Ethena expanding its sources of returns beyond crypto derivatives while attracting more demand for dollar savings products.
Ethena Expands Beyond Crypto Funding Rates
Ethena’s synthetic dollar combines backing assets with offsetting derivatives positions. Holding crypto while shorting corresponding futures aims to reduce exposure to changes in the underlying asset’s price. The strategy can also generate income from the difference between spot and futures markets, including funding payments on perpetual contracts.
USDe and sUSDe serve different roles: USDe is the dollar-denominated asset, while eligible users stake it into sUSDe to receive rewards. Those returns depend on protocol revenue, rather than a fixed interest rate. A decline in funding income therefore affects the economics of the savings product even when hedges continue to offset directional price exposure.
Institutional lending is one route to diversifying that income. FalconX announced a $1 billion secured financing facility with Ethena in August, designed to deploy USDe backing assets into overcollateralized institutional loans. The arrangement uses a special-purpose vehicle, with collateral held at qualified custodians and FalconX originating and servicing the loans.
FalconX said the financing could serve institutional trading strategies, corporate treasury management and payments. For Ethena, it adds a channel for earning returns outside crypto funding markets, with lending, servicing and collateral management handled through the facility’s institutional structure.
ENA Buybacks Depend on USDe Supply Growth
Ethena’s ecosystem update links the fee switch to USDe supply milestones, with the first tier at $7.5 billion. Once the threshold is reached, 95% of net revenue paid to the Ethena Foundation across its business lines is earmarked for programmatic ENA purchases, leaving 5% for growth.
The distinction between gross and net revenue matters. The buyback allocation applies to the foundation’s net revenue, rather than 95% of all income generated by the assets backing USDe. The share captured for the foundation rises with the supply milestones, and actual repurchases depend on realized returns and the composition of the backing.
The changes follow wider efforts to connect Ethena’s business to ENA holders, including the StablecoinX listing previously covered by CoinScreamer. Ethena has also moved to end recurring investor unlocks, while retaining the team’s original vesting schedules.
Tokenization Growth Underpins the Forecast
Standard Chartered expects tokenized real-world assets, excluding stablecoins, to expand from roughly $40 billion to $2 trillion by end-2028. A deeper market for these assets could broaden the opportunities available to Ethena, complementing its existing crypto strategies.
The bank’s Ethena price prediction remains conditional on that expansion and on demand for yield-bearing stablecoins. Kendrick identifies slower adoption and weaker growth in tokenized assets as risks. The $2 target is a forecast, while the buyback mechanism depends on revenue and supply thresholds being met.
Disclaimer: CoinScreamer is an independent media brand owned and operated by NuvexMedia LLC, publishing news, research, and market insights on digital assets and related technologies. NuvexMedia LLC invests in and collaborates with companies across the digital asset, blockchain, and technology sectors. These relationships do not influence CoinScreamer’s editorial coverage, and the publication maintains full editorial independence to provide accurate, timely, and objective information. © 2025 NuvexMedia LLC. All rights reserved. This content is for informational purposes only and should not be considered legal, tax, investment, financial, or other professional advice.
