[DigitalToday reporter Yoonseo Lee (이윤서)] Decentralised finance (DeFi) protocol Ethena has started a beta service for Ethena Pay that directly links stablecoin USDe to consumer payments.

According to blockchain outlet The Defiant on Monday (local time), the service uses Avalanche (AVAX) as a single settlement layer. Users can hold, send and pay with USDe without directly choosing a blockchain network.

The beta comes as a self-custody iOS money app. Initial early access is limited to 400 people, and Ethena plans to widen the beta each week through an expansion in September. Supported markets are presented as 49 countries across Central and South America, the Caribbean, Asia, the Middle East, Africa and Oceania. The United States, the European Union (EU), Britain and Canada will be supported later.

Ethena Pay combines transfers to a self-custody wallet, fiat on-ramps and a Visa card. Ethena Pay said it provides software, not a bank or custody service. Wallet keys are stored on the user's device and cannot be recovered by the company. The card is issued by Third National and operated by Rain, and use is limited to users outside the United States.

The focus is expanding where USDe can be used. Ava Labs said the in-app digital dollar balance is held in USDe, and Avalanche handles transfers, payments and settlement within the interface ecosystem. Ethena said this structure secures a distribution channel that lets users spend USDe without going through a chain selection process.

The yield terms are presented as up to 6 percent a year, but the structure is a combined figure of the base USDe yield plus a promotional "Daily Boost". It is not an additional 6 percent on top. The standard tier offers a total of 5 percent up to $5,000 (about 6.8 million won), the pro tier offers 6 percent up to $15,000 (about 20.5 million won), and the VIP tier offers 6 percent up to $50,000 (about 68 million won). Amounts above the cap receive only the base USDe yield, and at least 1 card purchase per month is required to receive the additional interest.

Ethena Pay defined the terms as a "discretionary promotion". Payouts are made daily in USDe and are not a return backed by deposits or insurance. The company said it can reduce or end them if necessary.

Cashback is paid at up to 5 percent. Standard-tier users receive 4 percent on monthly spending up to $2,500 (about 3.4 million won), pro users receive 4.5 percent up to $8,000 (about 11 million won), and VIP users receive 5 percent up to $20,000 (about 27 million won). Lower rates apply to spending above each band. Cashback is calculated after card payment settlement and is paid in AVAX based on the exchange rate at the time of accrual. Transactions under $1 are excluded, and purchases of cryptocurrencies and securities, gambling, gift cards, person-to-person transfers and account top-ups are also excluded.

The product also ties into a change in Ethena's collateral strategy. Ethena has so far relied heavily on crypto spot and short-term perpetual futures contracts. It said it has recently been diversifying its collateral portfolio into lending, real-world assets (RWA), stablecoins and non-crypto basis trades. Last week it also disclosed a plan to add equity-linked perpetual futures basis trades, but actual operations have not yet started.

The launch of Ethena Pay is significant in that it is an attempt to broaden USDe from a trading and investment-focused asset into a consumer payment interface. The start, however, is limited. Beta users will begin as a small group, and high yields and cashback come with tier-specific caps and conditions. The pace of early adoption is expected to depend on expanding supported countries and whether the reward policy is maintained.

We are partnering with @avax as the exclusive settlement layer for the Ethena Pay product suite. Providing saving and spending functionality for billions of users requires infrastructure that can support familiar financial experiences at a global scale by default. Avalanche… pic.twitter.com/IEpBnfLUyk