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    YZi Labs Enhances Investment in Ethena, the Innovator Behind Stablecoins

    wsjcryptoBy Nessun commento3 Mins Read

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    Tech-oriented venture capital organization YZi Labs has augmented its investment in Ethena, the stablecoin creator behind USDe, which will promote the digital dollar’s integration across decentralized and centralized platforms.

    The funding will facilitate Ethena USDe’s (USDe) growth on BNB Chain while allowing Ethena to persist in developing its USDtb stablecoin and an institutional settlement layer, “Converge,” Changpeng Zhao’s YZi Labs stated in an announcement on Friday.

    USDtb is supported by short-term treasury assets, comprising BlackRock’s BUIDL, while Converge is an Ethereum Virtual Machine-compatible chain aimed at tokenizing real-world properties.

    This initiative backs YZi’s mission to “facilitate open, scalable digital dollar frameworks that can function as a backbone of efficiency and liquidity for the entire financial ecosystem.”

    Ethena Labs CEO Guy Young remarked: “The ultimate goal of digital dollar distribution has always been embedding stable, yield-generating assets directly into the heart of the crypto economy.

    “With USDe now expanding across exchanges, DeFi protocols, and worldwide user groups, that vision is in the process of becoming a reality.”

    Source: YZi Labs

    The stablecoin integration arises as the US Treasury projected in April that the $295 billion market would surge to $2 trillion by 2028. Growth was accelerated in July by US President Trump’s endorsement of the GENIUS Act, regarded as one of the most comprehensive stablecoin regulations to date.

    USDe use cases to extend on BNB Chain

    YZi, previously known as Binance Labs, initially invested in Ethena via its Season 6 Incubation Program in February 2024, prior to USDe’s public rollout. USDe’s synthetic dollar is primarily underpinned by cryptocurrencies and stabilized through a delta-neutral hedging approach that maintains its value tied to $1.

    USDe’s growth on BNB Chain will build upon its April rollout with new money markets, protocol integrations, and ecosystem alliances already in progress, YZi mentioned.

    Related: ASIC relaxes licensing criteria for stablecoin distributors in Australia

    Since its inception, USDe has skyrocketed to a $14 billion market cap — only behind Tether (USDT) and Circle’s USDC (USDC) at $171.5 billion and $73.9 billion, respectively, CoinGecko data indicates. Enhanced adoption of USDe could enable it to carve into USDT and USDC’s supremacy and widen its application throughout the crypto landscape.