Ethena Labs, the developer of the Ethereum-based stablecoin USDe, has raised $14 million in a strategic funding round.

Dragonfly, Brevan Howard Digital and BitMEX founder Arthur Hayes' family office, Maelstrom, co-led the round, Ethena Labs said Thursday. Other investors included PayPal Ventures, Franklin Templeton, Fidelity via Avon Ventures, and several crypto exchanges including Binance, Deribit, Gemini and Kraken.

Ethena had commitments of over $50 million for the round but capped it at $14 million as it did not need more cash at the moment, founder and CEO Guy Young told The Block. The round began in late December and closed this week, Young said, adding that it was structured as a simple agreement for future equity with token warrants.

The round brought Ethena's valuation to $300 …