Coinbase Ventures, the investment arm of crypto exchange Coinbase (COIN), said it had backed Ethena (ENA), buying the protocol’s token on the open market as the two firms prepare to launch a new onchain savings product for the exchange’s more than 100 million users.

Ethena announced Tuesday that it partnered with Coinbase to expand onchain finance and savings offerings, with the first initiative scheduled to launch next week.

“Excited to partner with Coinbase for the first time to support their dollar savings products,” Ethena founder Guy Young said in a post on X. “The upcoming integration next week will be the first time Ethena products are available for their 100m+ user base.”

As part of the deal, Coinbase said it is already Ethena’s primary custodian, wallet provider and perpetuals venue, while the protocol’s USDe yield token will be distributed on the Base network and the “wider [Coinbase] ecosystem.”

ENA, Ethena’s governance token, surged 20% following the news before paring gains. The token was up 3% over the past 24 hours despite the broader crypto market pullback.

The investment marks a notable endorsement from Coinbase as Ethena seeks to expand beyond crypto-native users. Ethena emerged as one of crypto’s fastest-growing protocols, combining stablecoin demand with derivatives-based funding strategies to provide yield to investors in a token form. Assets on the protocol swelled to $15 billion by the October market peak, but since then declined to $5.3 billion as demand and yields vaned amid the crypto downturn.

The announcement comes as lawmakers continue to debate the CLARITY Act, a market structure bill that could provide a clearer regulatory framework for crypto products in the U.S. Young said the legislation could create additional tailwinds for onchain-native assets such as USDe, Ethena’s synthetic dollar token.

Tapping into Coinbase’s user base

While neither company disclosed details of the upcoming product, investors speculated the partnership could significantly expand Ethena’s distribution.

Access to Coinbase’s user base could provide a new source of capital as the protocol seeks to expand beyond decentralized finance into mainstream crypto brokerage platforms.

Yan Liberman, managing partner at Delphi Ventures, an investor in Ethena, said the deal could potentially connect Coinbase’s roughly $19 billion USDC stablecoin ecosystem with Ethena’s yield-generating infrastructure.

“If sUSDe yields clear baseline USDC rates, Coinbase can offer better USDC lending yields,” Liberman wrote on X. “Ethena gets deeper and cheaper funding than native DeFi alone.”

Expansion to institutional credit market with Anchorage

Ethena is also pushing deeper into institutional markets.

On Tuesday, the protocol and crypto bank Anchorage Digital said it had broadened its partnership with Ethena to support institutional lending.

Under the arrangement, Anchorage will manage collateral for Ethena’s loan investments through its Atlas platform, allowing borrowers to keep assets in custody rather than moving them onchain.

The setup aims to make crypto-native lending more accessible to institutions that require regulated custody and compliance controls.

“Institutions want access to crypto-native capital, but not at the cost of custody, controls, or operational rigor,” Anchorage CEO Nathan McCauley said in a statement.

The announcement builds on an existing relationship between the firms. Anchorage Digital Bank already serves as the U.S. issuer of Ethena’s USDtb stablecoin.