In a significant move within the blockchain and digital asset space, StablecoinX Inc. has entered into a merger agreement with TLGY Acquisition Corporation (a Cayman Islands exempted company) and StablecoinX Assets Inc., a Delaware corporation. This transaction is part of a broader business combination that includes a merger of TLGY with StablecoinX SPAC Merger Sub LLC, a wholly-owned subsidiary of StablecoinX, followed by a merger between StablecoinX Assets Inc. and StablecoinX Company Merger Sub, Inc., also a subsidiary of StablecoinX. The definitive agreement was established on July 21, 2025, and the deal is expected to close in the near future, pending regulatory approvals.
The financial implications of this merger are substantial, with TLGY Acquisition Corporation's shareholders set to exchange their Class A Ordinary Shares for StablecoinX Class A Common Stock on a one-for-one basis. Additionally, TLGY's Class B Ordinary Shares will convert into Class A shares prior to the merger. The merger includes a PIPE (Private Investment in Public Equity) financing component, with initial investors committing approximately $363 million, and additional commitments bringing the total PIPE financing to around $530 million. Ethena, a key partner in this transaction, will contribute $60 million worth of ENA Tokens, further solidifying its stake in the merged entity.
Strategically, this merger positions StablecoinX to leverage TLGY's public company status and access to capital markets, enhancing its operational capabilities and market visibility. The combined company aims to provide robust infrastructure and services related to the Ethena Protocol, a blockchain-based protocol that StablecoinX intends to support actively.
As for the timeline, the merger is anticipated to close shortly after the SEC declares the registration statement effective, with trading expected to commence soon thereafter. Following the merger, StablecoinX will be publicly traded, allowing for greater investment opportunities.
From a market impact perspective, this merger could significantly alter the landscape for shareholders and employees alike. Existing shareholders of TLGY will see their holdings converted into StablecoinX shares, while employees may benefit from enhanced growth potential and market reach of the newly formed entity. The broader market could react positively, as this merger aligns with increasing interest and investment in blockchain technologies.
Regulatory considerations are vital; the transaction requires antitrust and other regulatory approvals, which could influence the timing of the deal's completion. As the companies navigate the regulatory landscape, they will also focus on fulfilling the terms set forth in the business combination agreement to ensure a smooth transition into the public market.