Revolutionizing Custody Standards with Ethena’s New Framework
Ethena, a leading protocol in the world of stablecoin and DeFi-backed assets, has taken a giant step forward to strengthen its institutional-grade custody model. The governance-backed initiative aims to onboard Kraken, Anchorage Digital, and Zodia as official custodians, meeting the growing demand for secure and reliable custody solutions.
As of October 2025, Ethena has transitioned from an 80% perpetual futures backing in early 2025 to a more balanced 65% allocation in stablecoins. This evolution highlights the protocol’s commitment to adapting to changing market trends while keeping user assets secure.
Robust Evaluation Framework: The 50-Criteria Approach
To onboard the new custodians, Ethena developed an exhaustive 50-criteria evaluation process. The assessment framework is divided into three key pillars:
- Security and Custody Operations (40%): Requires a minimum score of 8 out of 10, ensuring all partners have top-tier security mechanisms and operational reliability.
- Operational Capabilities (30%): A minimum score of 7/10 is needed to ensure effective institutional operations.
- Protocol-Specific Criteria (30%): Partners must align with Ethena’s unique governance and attestation requirements, securing at least 8/10 points.
Additionally, any custodian with a history of client fund losses or uptime below 99.9% is immediately disqualified. The framework ensures that only the most reliable entities handle Ethena’s growing treasury of assets.
The February Bybit Hack: A Testament to Resilient Custody
Ethena’s custody infrastructure was put to the test during the February 2025 Bybit hack. Despite the severity of the breach, involving $30 million in unrealized profit and loss, the protocol’s off-exchange settlement structure ensured no impact on user assets. The managed separation between custody and trading allowed Copper, an existing custodian, to safeguard collateral successfully. This resilience has become a benchmark for custody security standards.
October 2025: Backing Assets and Custodian Expansion
Latest October attestations reveal that the protocol holds $5.2 billion in stablecoins such as USDT, USDC, PYUSD, and AAVE yield-bearing tokens, demonstrating a diversified treasury approach. With Kraken, Anchorage Digital, and Zodia set to join Copper and Ceffu as custodians, Ethena is strategically positioning itself as a leader in institutional-grade asset management.
This move to expand its custodian partnerships underscores Ethena’s dedication to mitigating counterparty risks and enhancing legal protections through regulated structures.
Spotlight Product: Aave Yield-Bearing Tokens
For those seeking reliable returns with their stablecoin assets, Aave’s yield-bearing tokens offer an excellent solution. As one of the protocols supporting Ethena’s treasury management, Aave provides secure, interest-earning opportunities that align with Ethena’s security standards.
