Ethena Launches Ethena Pay on Avalanche With Up to 6% Yield and 10% Cashback
Key Takeaways
- •Ethena Pay is in beta and is built exclusively on Avalanche as a self-custodial mobile payments app.
- •The app uses USDe as its core asset and supports bank transfers, crypto deposits and local-currency withdrawals.
- •Users can send money instantly to other Ethena Pay users by username without transfer fees.
- •The initial rollout covers 48 countries, but the United States and the European Union are not included in the first phase.
- •Ethena is using the product to expand beyond stablecoins as USDe supply has declined from its 2025 high.
Ethena Labs has launched the beta of Ethena Pay, a self-custodial payments app built exclusively on Avalanche. The product is designed to combine everyday spending, money transfers and crypto rewards in a single mobile platform.
The app is centered on Ethena’s USDe synthetic dollar. Users can receive funds through bank transfers or crypto deposits, while withdrawals to bank accounts can settle in local currency. Ethena also said users can send money instantly to other Ethena Pay users through usernames without transfer fees.
The launch expands Ethena beyond its core stablecoin business as the company targets consumer payments. Ethena Pay is initially rolling out across 48 countries, although the United States and the European Union are excluded from the first phase.
Rewards Drive Early Adoption
Ethena Pay offers three membership tiers, with higher tiers providing larger eligible balances and greater rewards.
Standard users can earn 5% APY on balances up to $5,000.
Pro users can earn 6% APY on balances up to $15,000.
VIP users can earn 6% APY on balances up to $50,000.
The app also includes a payment card with cashback paid in AVAX. Standard users receive 4%, while Pro and VIP users receive 4.5% and 5%, respectively. Selected brands can offer enhanced cashback of up to 10% for VIP customers.
Ethena said the yield comes from USDe economics, while it has not disclosed the funding source for the remaining rewards. That leaves the rewards structure closely tied to how the product is using USDe within a broader payments flow, rather than positioning the app as a standalone wallet.
Avalanche Becomes Ethena Pay’s Foundation
Ethena chose Avalanche as the exclusive blockchain infrastructure for Ethena Pay. The move builds on Avalanche’s growing focus on payments and follows Ethena’s participation in the Avalanche Payments Collective.
The app is available on iOS and Android, with access opening in stages. Ethena plans to expand into additional countries, currencies and features during the beta.
The rollout also comes as Ethena faces a more competitive and closely regulated stablecoin market. Its USDe supply has fallen substantially from its 2025 peak, making the company’s push into payments an important new avenue for adoption.
