Ethena Labs guarantees that USDe assets are kept in secure off-exchange custody solutions, such as Copper Clearloop, which removes direct risks associated with exchanges like Bybit. The company also intends to incorporate sUSDe into Aave-based lending through WLFI, boosting its involvement in decentralized finance lending and borrowing. In response to the disturbing news regarding the Bybit security breach, Ethena Labs swiftly moved to comfort its users. The company asserts that the USDe stablecoin is secure even though there are hedge positions on the exchange. We are keeping track of the ongoing situation with Bybit. To reiterate: all spot assets supporting USDe are stored in off-exchange custody mechanisms, including Bybit through Copper Clearloop, specifically for this purpose. No dollar of… — Ethena Labs (@ethena_labs) February 21, 2025. Ethena Labs guarantees the secure custody of USDe. Ethena Labs emphasized in its official announcement that all spot assets backing USDe are securely held off-exchange and managed through custody solutions like Copper Clearloop, among others. In simpler terms, there are no funds kept directly on Bybit or any other trading platforms. This is a crucial aspect that sets USDe apart from other stablecoins that might rely more heavily on specific exchanges. Nonetheless, Ethena Labs acknowledged that there is some exposure due to hedging activities on Bybit, with the total value remaining below $30 million. This figure stays within secure limits and does not jeopardize the stability of USDe in relation to existing reserves. Growing USDe: Transitioning from Stability to Strategic Expansion.
Ethena Labs reassures that USDe assets remain secure despite concerns surrounding Bybit.
