Coinbase's investment arm has for the first time put money into Ethena, the company behind the ENA token. The purchase of ENA tokens on the open market was announced Tuesday, and the token's price jumped nearly 10% on the day. The news also came with word of a broader partnership between Coinbase and Ethena.
How the investment was made
Coinbase Ventures, the venture capital division of the exchange, bought ENA tokens directly on the open market. That means the purchase was a market buy rather than a private token sale or strategic round. The exact amount invested or number of tokens acquired wasn't disclosed.
A nearly 10% gain
ENA traded up about 10% on Tuesday following the announcement. The token had been relatively flat in the weeks before the news broke. The price move came as traders reacted to both the investment and the partnership announcement.
The partnership layer
Alongside the investment, Coinbase and Ethena said they are forming a partnership. Neither company provided details on what that partnership entails — no products, integrations, or specific milestones were shared. But the move signals a closer relationship between the two firms going forward.
Ethena operates a protocol that issues a synthetic dollar token called USDe, and its native token ENA is used for governance. The company has drawn attention from major crypto investors before. Coinbase Ventures' entry adds another large name to its backer list.
Neither Coinbase nor Ethena responded to requests for additional comment by press time.
