- YZi Labs has increased its investment in Ethena, the company behind the USDe stablecoin.
- The funding will help USDe expand on BNB Chain and allow Ethena to build new products, including the USDtb stablecoin and a settlement platform called Converge.
- USDe’s growth strategy focuses on partnerships, new money markets, and protocol integrations to increase adoption.
- The stablecoin sector is projected to reach $2 trillion by 2028, with USDe now holding a $14 billion market cap behind only USDT and USDC.
- Ethena has drawn investments from large firms such as Fidelity, Franklin Templeton, and DragonFly, and USDe is set for use on new decentralized exchanges.
YZi Labs, a tech-focused venture capital firm, has increased its stake in Ethena, the issuer of the USDe stablecoin. The investment will aid USDe’s adoption across both decentralized and centralized platforms, and allow Ethena to develop new products, according to a statement released Friday by YZi Labs.
The new funding will support USDe’s expansion on BNB Chain, a blockchain operated by Binance, and further the development of Ethena’s other projects. These include the USDtb stablecoin—backed by short-term U.S. treasury assets like BlackRock‘s BUIDL—and Converge, an Ethereum-compatible chain designed for tokenizing real-world assets. YZi Labs said the move aligns with its goal of building open, scalable digital dollar infrastructures to improve efficiency and liquidity in finance.
Ethena Labs CEO Guy Young 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.”
The USDe stablecoin uses a “delta-neutral” hedging strategy—meaning it balances crypto asset risks to keep its value fixed at $1. Ethena first received support from YZi Labs through its Season 6 Incubation Program in February 2024, before USDe’s official launch. Since then, USDe’s market cap has grown to $14 billion, making it the third-largest stablecoin behind USDT ($171.5 billion) and USDC ($73.9 billion).
The expansion on BNB Chain began in April with new protocols, money markets, and ecosystem partnerships. Broader adoption could allow USDe to capture market share from USDT and USDC as the stablecoin sector continues to grow.
Recently, the U.S. Treasury projected stablecoin markets could hit $2 trillion by 2028, boosted by President Trump’s July signing of the GENIUS Act, a major new stablecoin law.
YZi Labs, which manages $10 billion across crypto, AI, and healthcare, also highlighted plans for USDe integration on upcoming decentralized perpetuals exchange Aster, a competitor to Hyperliquid. Ethena’s backers now include Fidelity, Franklin Templeton, and DragonFly.
For more, see the official statement from YZi Labs.
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