FalconX Partners with Ethena on $1 Billion Warehouse Financing Facility to Expand Institutional Lending Capacity

FalconX, a leading institutional digital asset prime brokerage, announced a $1 billion secured lending facility through an SPV with Ethena, which will deploy capital from the assets backing USDe into overcollateralized institutional credit.

By bridging Ethena’s crypto-native liquidity with FalconX’s institutional borrowing demand, the facility accelerates the integration of on-chain capital into global credit markets. This launch reinforces FalconX’s position as the premier conduit between on-chain and traditional financial markets.

For Ethena, the facility provides access to overcollateralized institutional lending, delivering a stable return stream that extends beyond traditional crypto basis strategies. Loans financed through the facility have collateral held at qualified custodians with FalconX acting as originator, servicer, and collateral manager.

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“Institutional credit in the digital asset space is evolving rapidly, moving away from fragmented pools toward deeply integrated, secure capital structures,” said Craig Birchall, Head of Credit at FalconX. “This partnership with Ethena is a significant milestone in that evolution, enabling FalconX to deliver flexible, overcollateralized financing solutions for everything from complex trading strategies and corporate treasury management to payment solutions. We look forward to working closely with the Ethena team as we pioneer capital-efficient credit channels across the digital asset ecosystem.”

“Secured institutional lending is one of the largest and most durable sources of return in finance, and on-chain capital has barely touched it,” said Guy Young, founder of Ethena Labs. “Partnering with FalconX, one of the most trusted prime brokers in the industry, gives us a secured, overcollateralized channel into institutional credit. It’s a meaningful step toward on-chain dollars becoming a permanent part of traditional finance.”

The agreement builds on an existing relationship between the two firms, including FalconX’s support for USDe across its institutional trading and financing ecosystem. It marks one of the largest deployments of on-chain capital into secured institutional credit to date, and reflects a strategy both firms expect to scale as institutional borrowing demand grows.