Ethena Pay Launches Self-Custodial Neobank Offering High Yields

Ethena Pay, a self-custodial neobank application built on the Avalanche blockchain, officially launched on September 1, 2026. Founded by Guy Young, the platform allows users to hold balances in USDe, a synthetic dollar, while earning an annual percentage yield (APY) of up to 6%. Users can also spend their balances using a Visa card that offers cashback rewards ranging from 4% to 5%, potentially increasing to 10% at select merchants, with cashback paid in AVAX, the native token of the Avalanche network.

Young, who has nearly a decade of experience in traditional finance, pivoted to consumer finance after the circulating supply of USDe contracted significantly from its peak of over $14 billion in October 2025 to an estimated $4-6 billion by late August 2026. Ethena Pay is currently available in approximately 48-50 countries on iOS, with plans to expand to the United States, United Kingdom, and European Union in the near future. The initial rollout has already seen seven-figure deposits within the first two weeks and has historically processed over $30 billion in mint and redeem flows across its ecosystem.

Ethena Pay aims to differentiate itself in a competitive landscape that includes crypto debit cards from companies like Coinbase and Crypto.com, as well as fintech neobanks such as Revolut and Nubank. By allowing users to earn yields directly from their synthetic dollar holdings, Ethena Pay seeks to provide a more attractive value proposition than traditional banks and fintech competitors, which typically do not pass on yields to users holding stablecoins. The platform's tiered rewards structure also incentivizes user loyalty through its governance token, ENA.

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Source: KLEA News