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 is able to help the digital greenback’s adoption throughout decentralized and centralized platforms.

The funding will help Ethena USDe’s (USDe) growth on BNB Chain whereas enabling Ethena to proceed constructing its USDtb stablecoin and an institutional settlement layer, “Converge,” Changpeng Zhao’s YZi Labs stated in a press release on Friday.

USDtb is backed by short-duration treasury property, together with BlackRock’s BUIDL, whereas Converge is an Ethereum Digital Machine-compatible chain targeted 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 the whole monetary ecosystem.”

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

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

The stablecoin adoption comes because the US Treasury estimated in April that the $295 billion market would increase 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 up to now.

USDe use instances to broaden on BNB Chain

YZi, previously Binance Labs, first invested in Ethena via 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 via a delta-neutral hedging technique that retains its worth pegged to $1.

USDe’s growth 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 guidelines 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 knowledge reveals. Elevated adoption of USDe may enable it to slice into USDT and USDC’s dominance and broaden its use throughout the crypto ecosystem.