Company: TLGYF
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001213900-25-125608
Chunk: 448

Company: TLGY ACQUISITION CORP
Filing Date: 2025-12-29
Form: S-4/A
Chunk 448
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 law through the GENIUS Act which established the first comprehensive regulatory framework specifically for “payment stablecoins” — digital 213 assets designed to maintain a stable value pegged to a fiat currency (typically the U.S. dollar) and intended for use in payments or transfers. The GENIUS Act aims to foster innovation in the stablecoin sector while ensuring financial stability, consumer protection, and compliance with anti -moneylaundering (AML) standards. The regulatory landscape for crypto assets continues to evolve rapidly across different jurisdictions, and we may become subject to new laws and regulations that could materially affect our business operations, compliance obligations, and financial performance. For a comprehensive discussion of the risks that existing and future regulations pose to our business, including specific regulatory developments that may materially affect our operations, see the section entitled “ Risk Factors”in this proxy statement/prospectus. Risks and Challenges We plan to operate in a dynamic and highly competitive industry characterized by rapid technological advancements and regulatory uncertainties. Key risks include: • Market Volatility: The value of ENA Tokens is subject to significant price fluctuations, which could impact the Company’s treasury reserves and financial stability. • Regulatory Environment: Evolving regulations surrounding cryptocurrencies and blockchain technology may impose compliance requirements or restrictions on validator operations. • Technological Risks: The Company’s success depends on operating and maintaining secure and reliable validator nodes, which could be vulnerable to cyberattacks or technical failures. • Dependency on Ethena: The Company is reliant on the success and performance of (i) the Ethena protocol and its stablecoin products, which include but are not limited to, sUSDe and (ii) Ethena Labs, who issues USDe through an affiliate, and adverse developments affecting Ethena could materially impact our business. • Competition: The validator and infrastructure software and services market is competitive, with established players and new entrants vying for market share, many of whom may have greater resources and operating histories than we do. To address these challenges, we plan to prioritize investments in cybersecurity, regulatory compliance, promoting education and usage of the Ethena products, and strategic partnerships within the Ethena ecosystem to maintain a competitive edge. We expect to work with our software license partners, establish new partnerships with other software providers, and engage public relations firms to promote Ethena, although the timing and funding of these efforts will depend on our available resources and operating results. In the case where the proposed Converge network has not launched by the time we close or we are otherwise unable