Ethena vs Paxos

How Ethena vs Paxos compare on our ratings, stablecoin specs, funding, pros and cons.

Ethena3.5/5

Paxos4.3/5

Feature	Ethena Visit	Paxos Visit
Ratings
Our score	3.5/5	4.3/5
User rating	No reviews yet	No reviews yet
Reserves & transparency	4.0	4.5
Peg stability	3.5	4.5
Regulation	2.0	5.0
Liquidity & chains	4.5	3.5
Redemption	3.5	3.5
Specs
Tickers	USDe, sUSDe	USDP, USDG, PYUSD, PAXG
Pegged to	US dollar	US dollar
Backing	Delta-neutral (synthetic)	Cash & treasuries
Yield-bearing	Yes	No
Regulated issuer	No	Yes
Licenses & charters	Not disclosed	National Trust Bank Charter (OCC), Limited Purpose Trust Charter (NYDFS), Major Payment Institution (MAS), Electronic Money Institution (FIN-FSA)
Supply / market cap	$5.92B	Not disclosed
Chains	Not disclosed	Ethereum, Solana, Arbitrum One, Polygon PoS, Avalanche, Ink, Mantle, Robinhood Chain, X Layer, Stellar
Reserve reports	Monthly custodian attestations and weekly Proof of Reserves reporting	Monthly reserve reports conducted by KPMG LLP and previously WithumSmith+Brown, PC
Redemption terms	Direct mint and redemption restricted to whitelisted users passing KYC/AML; US users prohibited	1:1 direct fiat redemption via Fedwire, SWIFT, and CUBIX for verified institutional and enterprise platform accounts
Issuer can freeze tokens	Not disclosed	Yes
Company
Founded	—	2012
Headquarters	—	United States
Investors	Dragonfly Capital Partners, F-Prime Capital, Franklin Templeton, Pantera Capital +1	Declaration Partners, Founders Fund, PayPal Ventures
Strengths and weaknesses
Pros	Independent SOC 2 Type II audit completed with zero operational exceptions noted Generates organic yield from basis spreads and staked collateral without lending rehypothecation Backing assets remain in institutional custody rather than directly on centralized exchanges Processed more than $30 billion in cumulative mint and redemption volume	National trust bank oversight from the OCC USDP and PYUSD attestations issued by KPMG from February 2025 USDG supports seven listed networks Stablecoins are backed 1:1 under Paxos's stated model
Cons	Barred from distribution across the European Union by BaFin under MiCA rules Direct minting and redemptions require KYC and exclude users from the United States Briefly depegged to $0.97 during market stress on October 10, 2025 Negative funding rate environments reduce yield and strain the protocol reserve fund	Redemption depends on eligibility and Paxos onboarding controls Stablecoin access varies by token and blockchain BUSD withdrawals are no longer available on the Paxos Platform Issuer controls and reserve-custody arrangements create freeze and redemption risks
Best for	Offshore yield seekers holding dollars, DeFi liquidity providers using collateral, Institutional traders managing basis spreads	Businesses issuing stablecoins, Institutional payment platforms, Developers building stablecoin integrations

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