Abu Dhabi’s M2 Capital has announced a $20 million strategic investment in Ethena ($ENA), the governance token of the Ethena protocol.
Ethena is a crypto-native synthetic dollar protocol built on Ethereum.
The deal underscores the UAE’s ambition to cement its position as a hub for digital assets, leveraging regulatory clarity and growing investor appetite to draw global players, the companies said on Thursday.
It also highlights the Middle East’s growing role in the global crypto economy, with Abu Dhabi-based M2 positioning itself as a bridge between institutional wealth and innovative blockchain products.
By backing Ethena, a protocol that powers a crypto-native synthetic dollar, M2 aims to combine its regulated structure with products that have gained adoption internationally.
Ethena underpins USDe, a so-called digital dollar, and sUSDe, its yield-bearing version. It is designed to mirror the value of the US dollar, but instead of cash reserves, it is backed by crypto assets and trading strategies.
Simply put, the digital dollar is a virtual version of cash that would hold the same value as a paper dollar but exists entirely online, enabling people to make payments without needing physical currency or a traditional bank account.
Since its launch in early 2024, the protocol has attracted more than $14 billion in total value locked, reflecting strong demand for its stablecoin-plus-rewards model. According to Ethena, its design has delivered double-digit returns, reaching around 14 per cent in bullish 2025 conditions.
Kim Wong, managing director and head of Treasury at M2 Holdings, said the investment “marks another important step forward for the Middle East’s most sophisticated digital asset investors”.
He added that combining exclusive product access with a regulated framework would help set “a new benchmark for trust, security, and integrity” in the regional market.
Conor Ryder, Ethena's head of research, described stablecoins as “the single most important instrument in crypto”. He said creating a synthetic dollar was the sector’s greatest challenge and its largest opportunity.
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The investment follows M2’s backing of the Sui Foundation earlier this year, part of its broader effort to expand exposure to emerging digital asset infrastructure.
Its affiliate, M2 Global Wealth Limited, intends to selectively integrate Ethena products into its wealth management offering, providing clients with access to yield strategies within a regulated environment.
M2, which rolled out its ADGM-licensed crypto platform for investors in 2023, has steadily broadened its portfolio across custody, trading and yield products.
Its entities are licensed in Abu Dhabi and The Bahamas, giving the group a multi-regulated structure as it seeks to expand regionally and globally.