{"id":16238,"date":"2025-09-21T06:12:35","date_gmt":"2025-09-21T04:12:35","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16238"},"modified":"2025-09-21T06:12:35","modified_gmt":"2025-09-21T04:12:35","slug":"yzi-labs-enhances-investment-in-ethena-the-innovator-behind-stablecoins","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/21\/yzi-labs-enhances-investment-in-ethena-the-innovator-behind-stablecoins\/","title":{"rendered":"YZi Labs Enhances Investment in Ethena, the Innovator Behind Stablecoins"},"content":{"rendered":"

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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\u2019s integration across decentralized and centralized platforms.<\/p>\n

The funding will facilitate Ethena USDe\u2019s (USDe) growth on BNB Chain while allowing Ethena to persist in developing its USDtb stablecoin and an institutional settlement layer, \u201cConverge,\u201d Changpeng Zhao\u2019s YZi Labs stated<\/a> in an announcement on Friday.<\/p>\n

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.<\/p>\n

This initiative backs YZi\u2019s mission to \u201cfacilitate open, scalable digital dollar frameworks that can function as a backbone of efficiency and liquidity for the entire financial ecosystem.\u201d<\/p>\n

Ethena Labs CEO Guy Young remarked: \u201cThe ultimate goal of digital dollar distribution has always been embedding stable, yield-generating assets directly into the heart of the crypto economy.<\/p>\n

\u201cWith USDe now expanding across exchanges, DeFi protocols, and worldwide user groups, that vision is in the process of becoming a reality.\u201d<\/p><\/blockquote>\n

Source: <\/em>YZi Labs<\/em><\/a><\/figcaption><\/figure>\n

The stablecoin integration arises as the US Treasury projected in April that the $295 billion market would surge to $2 trillion by 2028.<\/a> Growth was accelerated in July by US President Trump\u2019s endorsement of the GENIUS Act<\/a>, regarded as one of the most comprehensive stablecoin regulations to date.<\/p>\n

USDe use cases to extend on BNB Chain<\/h2>\n

YZi, previously known as Binance Labs, initially invested in Ethena via its Season 6 Incubation Program in February 2024, prior to USDe\u2019s public rollout. USDe\u2019s synthetic dollar is primarily underpinned by cryptocurrencies and stabilized through a delta-neutral hedging approach that maintains its value tied to $1.<\/p>\n

USDe\u2019s growth on BNB Chain will build upon its April rollout with new money markets, protocol integrations, and ecosystem alliances already in progress, YZi mentioned.<\/p>\n

Related: <\/strong><\/em>ASIC relaxes licensing criteria for stablecoin distributors in Australia<\/strong><\/em><\/a><\/p>\n

Since its inception, USDe has skyrocketed to a $14 billion market cap \u2014 only behind Tether (USDT<\/a>) and Circle\u2019s USDC (USDC<\/a>) at $171.5 billion and $73.9 billion, respectively, CoinGecko data<\/a> indicates. Enhanced adoption of USDe could enable it to carve into USDT and USDC\u2019s supremacy<\/a> and widen its application throughout the crypto landscape.<\/p>\n