YZi Labs announced that it has expanded its holding in Ethena Labs, the protocol behind USDe, the third-largest dollar-denominated crypto asset.
According to a release posted by YZi, the investment signals continued backing for Ethena’s next growth phase, which includes deeper adoption of USDe across centralized exchanges and DeFi platforms, expansion on BNB Chain, and the development of new products such as USDtb, a fiat-backed stablecoin, and Converge, an institutional settlement layer.
YZi Labs, formerly Binance Labs, first invested in Ethena through its Season 6 Incubation Program in February 2024, before USDe’s public launch. Ethena’s model is built on delta-neutral hedging, designed to stabilize its synthetic dollar while generating sustainable yield without reliance on traditional banks.
Since then, USDe has grown rapidly to more than $13 billion in supply, crossing the $10 billion milestone faster than any other stablecoin. Ethena’s total value locked (TVL) now exceeds $13 billion, with integrations spanning leading DeFi applications and centralized exchanges.
The renewed commitment comes as Ethena strengthens its presence on BNB Chain following an April 2025 deployment, introducing money markets and new protocol partnerships. Upcoming products like USDtb aim for regulatory compliance, while Converge, developed with partners including Securitize and BlackRock collaborators, seeks to bring real-world assets onchain.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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