YZi Labs, previously known as Binance Labs, has reinforced its commitment to Ethena Labs, the protocol behind USDe. The investment arm confirmed that it has increased its stake and will continue providing long-term strategic support. Ethena, known for its crypto-native synthetic dollar, has become one of the fastest-growing projects in digital finance.
USDe now stands as the third-largest USD-denominated crypto asset, with a supply exceeding $13 billion. The TVL in Ethena has also crossed $13 billion, a milestone that underlines strong demand from both centralized exchanges and decentralized finance platforms.
The rapid rise highlights the success of Ethena’s delta-neutral hedging model, which ensures asset stability while generating yield without reliance on traditional banking partners.
The expanded partnership comes as the network accelerates its presence on BNB Chain. Since its initial deployment in April, the project has been working on building new money markets, integrating with leading protocols, and establishing fresh ecosystem partnerships.
This expansion is expected to make USDe more accessible to global users while strengthening its use across multiple platforms. Nicola Wang, Investment Director at YZi Labs, emphasized the importance of Ethena’s unique model, pointing out that the team had impressed investors early on with their vision for a yield-bearing digital dollar.
Dana Hou, investment partner at YZi Labs, echoed this sentiment, noting that the protocol has now become a defining force in the synthetic dollar category.
With YZi Labs’ new support, the network is to diversify its range of products. The USDtb stablecoin is being developed by the project with fiat collateral and with full priority towards compliance.
At the same time, they are actively developing Converge, a settlement layer constructed in concert with Securitize and BlackRock-related tokenization firms. This is to bring financial-grade real-world assets onto the blockchain.
Guy Young, CEO of Ethena Labs, said:
The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy. With USDe now scaling across exchanges, DeFi protocols, and global user bases, that vision is becoming a reality.
For YZi Labs, with global funds exceeding $10 billion and investments covering some 300 projects across 25 countries, this latest move reinforces its position as an influential participant shaping digital finance’s future direction.
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