CMC News

#YziLabs Expands #Ethena Investment as USDe Supply Hits $13B

YZi Labs has deepened its investment in #EthenaLabs, the issuer behind the synthetic stablecoin $USDe, which has grown to become the third-largest crypto dollar with over $13 billion in circulation. The expanded backing will fund multi-chain expansion and new product development.

The investment supports #Ethena's growth phase, including footprint expansion on BNB Chain and development of institutional-grade products. New initiatives include $USDtb, a fiat-backed stablecoin, and Converge, an institutional settlement layer built with Securitize and BlackRock-connected partners.

$USDe operates as a "synthetic dollar" using $BTC, $ETH, and $SOL as backing assets paired with equal-value short perpetual futures positions to maintain its $1 peg. The innovative approach launched less than two years ago and crossed $10 billion in supply faster than any other dollar-pegged crypto asset.

YZi Labs, formerly Binance Labs and founded by Changpeng "CZ" Zhao and Yi He, first invested in Ethena through its Season 6 Incubation Program in February 2024. The stablecoin adoption comes as the U.S. Treasury estimated the $295 billion stablecoin market could reach $2 trillion by 2028.

$USDtb development focuses on short-duration treasury assets including BlackRock's BUIDL fund, while Converge targets tokenized real-world assets on an Ethereum Virtual Machine-compatible chain. These products bridge traditional finance with crypto infrastructure for institutional adoption.

Ethena Labs CEO Guy Young described the expansion as realizing "the holy grail of digital dollar distribution" by embedding stable, yield-bearing assets directly into crypto's core economy. $USDe now scales across exchanges, DeFi protocols, and global user bases.

The stablecoin's #BNBChain expansion builds on April deployment with new money markets, protocol integrations, and ecosystem partnerships already underway.