YZi Labs Deepens Stake in Stablecoin Issuer Ethena

Tech-focused enterprise capital agency YZi Labs has elevated its stake in Ethena, the stablecoin issuer behind USDe, which can help the digital greenback’s adoption throughout decentralized and centralized platforms.

The funding will help USDe’s — the third-largest stablecoin — enlargement on the BNB Chain whereas enabling the Ethena to proceed constructing its USDtb stablecoin and an institutional settlement layer “Converge,” Changpeng Zhao’s YZi Labs said in an announcement on Friday.

USDtb is backed by short-duration treasury property, together with BlackRock’s BUIDL, whereas Converge is an Ethereum Digital Machine-compatible chain centered on tokenizing real-world property.

The transfer helps YZi’s mission to “help open, scalable digital greenback infrastructures that may function a spine of effectivity and liquidity for your complete monetary ecosystem.”

Ethena Labs CEO Man Younger added: “The holy grail of digital greenback distribution has all the time been embedding secure, yield-bearing property instantly into the core of the crypto economic system. 

“With USDe now scaling throughout exchanges, DeFi protocols, and international person bases, that imaginative and prescient is changing into a actuality.”

The stablecoin adoption comes because the US Treasury estimated in April that the $295 billion market would boom to $2 trillion by 2028. Momentum was boosted in July by US President Trump’s signing of the GENIUS Act, seen as probably the most complete stablecoin legal guidelines thus far.

USDe use circumstances to develop on BNB Chain

YZi, previously Binance Labs, first invested in Ethena by its Season 6 Incubation Program in February 2024, earlier than USDe’s public launch. USDe’s artificial greenback is backed primarily by cryptocurrencies and is stabilized by a delta-neutral hedging technique that retains its worth pegged to $1.

USDe’s enlargement on BNB Chain will construct on its April deployment with new cash markets, protocol integrations, and ecosystem partnerships already underway, YZi stated.

Associated: ASIC eases licensing rules for stablecoin distributors in Australia

Since launching, USDe has soared to a $14 billion market cap — trailing solely Tether (USDT) and Circle’s USDC (USDC) at $171.5 billion and $73.9 billion, respectively, CoinGecko data exhibits. Elevated adoption of USDe may permit it to slice into USDT and USDC’s dominance and broaden its use throughout the crypto ecosystem.