42-Day Redemption Period for USDe Holders
BaFin cleared Ethena Labs’ 42-day redemption plan for USDe holders, giving them a deadline of August 6 to file claims directly against Ethena GmbH. The procedure will be facilitated by a special representative named by BaFin.
After the expiry of the period of redemption, Ethena GmbH will be wound up across Germany, the EU, and the EEA. Post-appointment claims must be brought against Ethena’s offshore subsidiary, Ethena (BVI) Ltd.
No plans to Re-enter EU Immediately
Ethena Labs guaranteed that following the completion of redemption, there would be no outstanding regulatory obligations from Ethena GmbH regarding USDe operations. However, the company did not present any plans to re-emerge in the EU or EEA markets.
BaFin Crackdown Commenced in March
The decision brings an end to a four-month fight initiated on March 21, when BaFin blocked the sale of Ethena GmbH’s USDe stablecoin. BaFin claimed that Ethena’s sUSDe yield-bearing tokens qualified as unregistered securities under MiCA, the EU’s Markets in Crypto-Assets Regulation.
Sanctions followed in rapid succession: BaFin froze USDe reserves, took down Ethena GmbH’s website, and suspended new user registration. By mid-April, Ethena shut down all German activities and withdrew its MiCA license application.
5.6 Billion USDe Remaining in Circulation
Despite the regulatory backlash, about 5.6 billion USDe tokens remain in circulation globally. They were predominantly minted prior to MiCA’s implementation and thus remain unexposed to similar regional regulatory scrutiny.
