Ethena partners with TON to bring yield-bearing dollar alternatives to Telegram’s 900M+ users, leveraging crypto wallet growth in Nigeria and Turkey amid record inflation.
The Open Network (TON) will host Ethena’s synthetic dollar products through Telegram mini-apps starting 24 June 2024, creating new dollar access points for users in economies with 34.2% inflation rates according to official statistics.
Stablecoin Integration Meets Mass Messaging Platform
Ethena Labs confirmed through an official press release that its USDe and sUSDe tokens will become available on TON blockchain wallets by late Q3 2024. The integration enables Telegram users in 140 countries to convert local currencies to dollar-denominated crypto assets through custodial wallets and TON Space’s non-custodial solution.
Telegram’s Head of Web3 Development, John Hyman, stated during the 24 June announcement: ‘This collaboration brings decentralized finance infrastructure to populations systematically excluded from traditional banking systems.’ The partnership follows TON’s 12 June integration with HashKey Group, which established fiat on-ramps for 15 Asian and African currencies.
Emerging Market Strategy Accelerates
Tonkeeper analytics reveal Telegram’s crypto wallet user base grew 217% in Nigeria during H1 2024, coinciding with the naira’s 45% depreciation against the dollar. Ethena’s product lead noted in a developer blog post that tsUSDe will offer daily compounded yields sourced from Ethereum staking rewards and futures basis trading.
The service directly competes with Tether’s USDT on Tron, which currently dominates 68% of emerging market stablecoin transfers according to Chainalysis data. Unlike centralized alternatives, USDe maintains dollar parity through delta-neutral hedging strategies audited by Quantstamp.
Algorithmic Stablecoins Face Scrutiny
Ethena’s $3.4B market cap growth comes despite ongoing debates about algorithmic stablecoin risks. CoinDesk reported on 18 June that USDe’s reserves include 32,000 BTC in futures positions across three exchanges, creating potential liquidity challenges during extreme volatility.
TON Foundation’s CTO, Anatoliy Makosov, emphasized safeguards during a 25 June AMA: ‘We implemented circuit breakers that pause tsUSDe conversions if USDe’s collateral ratio falls below 100.5%.’ The mechanism references lessons from TerraUSD’s 2022 collapse, when $40B evaporated from crypto markets.
Historical Context: Mobile Payments Paved the Way
Today’s crypto wallet surge mirrors China’s 2010s mobile payment revolution. Between 2013-2018, Alipay and WeChat Pay grew from niche services to platforms processing $17T annually, according to People’s Bank of China reports. These systems enabled later fintech innovations by acclimating users to digital transactions.
Similarly, TON’s transaction volume growth—from 580,000 daily in June 2023 to 6.8 million in June 2024—shows how messaging apps can drive financial adoption. However, analysts warn that crypto’s volatility presents unique challenges absent from Alipay’s yuan-based ecosystem.
