Ethena Launches Ethena Pay on Avalanche With Yield and Cashback
The beta starts in 48 countries, but the U.S. and EU are not included yet. Ethena ties payments, yield, and cashback to USDe and AVAX, while staying under supervision in Europe.
Key Takeaways
- Ethena Labs launched the beta of Ethena Pay on Avalanche, with payments, balance building, and rewards centered around USDe.
- The rollout starts in 48 countries; the United States and European Union are not included in the first phase yet.
- Users can earn yield and cashback, while Ethena remains under supervision in Europe after action from BaFin.
Ethena Labs has launched the beta of Ethena Pay, a self-custody money app on Avalanche that combines payments, balance building, and rewards. The app uses Ethena's USDe as a dollar balance and, according to founder Guy Young, is the first neobanking app directly integrated with its own stablecoin issuer. The rollout starts in 48 countries, while the United States and the European Union are not included in the first phase yet.
Paying With USDe
With Ethena Pay, users can receive money through IBAN details or directly in their crypto wallet. In both cases, the balance arrives as USDe. Transfers to external bank accounts are also possible, with payouts settled in the recipient's local currency.
According to Ethena, instant global transfers through a username or tag are free. Bank transfers in USD, EUR, and GBP also cost nothing. For other bank transfers, the company charges fees of 0.05% to 0.1%.
Rewards and Card
The app works with three memberships. Standard is free. Pro is unlocked by staking $2,000 (€1,720) worth of ENA or bringing in 10 users. VIP requires $10,000 (€8,620) worth of ENA or 50 referrals.
Standard users can get 5% APY on balances up to $5,000 (€4,310). Pro and VIP get 6% on balances up to $15,000 (€12,900) and $50,000 (€43,100), respectively. Ethena says the yield on USDe funds the savings yield, while the source of the other rewards is not shared.
The Ethena Pay Card gives cashback in AVAX tokens: 4% for Standard, 4.5% for Pro, and 5% for VIP. Pro and VIP users can also get up to 5% and 10% cashback at selected brands, including Uber, Spotify, and Claude.
Why Avalanche Matters
For European crypto readers, the key point is that Ethena is building its payment product exclusively on Avalanche. The chain already saw more activity in 2026, with a sharp rise in transaction counts and growing use for stablecoin transfers. That makes the launch more than just a new app: it shows that stablecoin services are increasingly being tied to real payment flows and not just trading on crypto exchanges.
The move also comes at a time when Ethena is under supervision in Europe. German regulator BaFin let Ethena GmbH wind down its USDe activities in June 2025 after the company withdrew its application under Europe’s crypto rules. Ethena says it will add new countries, currencies, and features every week during the beta, but it has not named a fixed date for the next expansions.
