M2 Capital Bets Big on Ethena Labs With $20M ENA Investment

UAE-based M2 Capital has taken a bold step to commit $20 million in investment in Ethena Labs’ governance token, ENA. The move is designed to give Middle Eastern investors a direct pathway into one of the fastest-growing areas of decentralized finance (DeFi).

M2 Capital Backs ENA Growth

M2 Capital, the investment arm of M2 Holdings, announced the deal in a recent press release. 

The company described this move as part of its mission to link regulated finance with innovative Web3 solutions. The firm emphasized that this strategy goes beyond short-term gains. It shows a long-term plan to bring together clear rules, new ideas, and steady growth in the region’s financial sector.

This is not M2 Capital’s first step into blockchain ventures. The company earlier helped SUI Group set up a Sui treasury, showing its wider plan to back important Web3 projects. Kim Wong, Managing Director and Head of Treasury at M2 Holdings, stressed the importance of the ENA investment. 

He noted that it represents a major step forward for Middle Eastern financial participation in digital assets. 

Ethena Emerges as a DeFi Leader with Growing Institutional Backing

Ethena Labs has quickly become one of the most talked-about DeFi platforms of 2025. The system uses two tokens: USDe, a digital dollar kept stable with crypto backing and hedging. 

Last April, Ethena’s team enhanced the synthetic dollar-pegged product with Bitcoin collateral. This move was aimed at improving liquidity and bolstering the security of the USDe product. The second token is sUSDe, which gives returns from trading and staking. 

Ethena has grown quickly since its launch in early 2024, now holding over $14 billion in locked assets. 

Its sUSDe token has drawn wide interest in DeFi, offering yearly returns of 20–30% and making the project a clear market leader. M2 Capital’s backing adds to a wave of institutional investment in ENA. Earlier this month, ArkStream Capital invested $10 million into the company, bringing its total to $15 million. 

Also, Mega Matrix Inc., a publicly traded company, has filed a $2 billion universal shelf registration with the U.S. Securities and Exchange Commission (SEC). The filing showed plans to buy governance tokens like ENA. This points to a rising interest in stablecoin governance assets as part of wider treasury strategies.

Ethena Hits $2B Deposits and Expands for Institutional Investors

Ethena is gaining ground on global exchanges. On Binance, deposits into its USDe Earn product have passed $2 billion in only four days. The ENA token now has a market value of about $4 billion and trades around $375 million daily.

Ethena has also launched iUSDe, a version designed for big investors, to link decentralized finance with traditional finance and meet institutional standards. 

M2 Capital’s latest investment marks an important step for Middle East finance. It connects major investors to digital assets, supports Ethena’s growth, and prepares the region for a Web3 future.