- YZi Labs expands its Ethena stake to accelerate USDe adoption across ecosystems.
- Investment supports USDe’s BNB Chain growth, USDtb stablecoin, and Converge.
- Ethena stated its aim to scale digital dollar infrastructure with yield-bearing assets.
YZi Labs has expanded its investment in Ethena, the issuer behind the synthetic stablecoin USDe, to accelerate the digital dollar adoption across decentralized and centralized platforms. The increased stake from Changpeng Zhao’s investment firm will aid in USDe’s continued expansion and also support the development of new infrastructure products.
The investment will specifically assist USDe’s growth on BNB Chain while allowing Ethena to advance its USDtb stablecoin and institutional settlement layer called Converge. According to Friday’s statement, USDtb operates with backing from short-duration treasury assets, including BlackRock’s BUIDL fund, while Converge functions as an Ethereum Virtual Machine (EVM) -compatible chain focused on real-world asset tokenization.
Strategic Focus on Digital Dollar Infrastructure
YZi Labs characterized the investment as aligned with its mission to “support open, scalable digital dollar infrastructures that can serve as a backbone of efficiency and liquidity for the entire financial ecosystem.” This positioning targets the growing institutional demand for stablecoin solutions that bridge traditional finance with cryptocurrency markets.
Ethena Labs CEO Guy Young emphasized the importance of integrating stable, yield-bearing assets directly into the cryptocurrency ecosystem cores. He described this integration as the “holy grail of digital dollar distribution” and highlighted the potential for synthetic dollars to capture both stability and yield generation within DeFi protocols.
YZi Labs, formerly known as Binance Labs, initially invested in Ethena through its Season 6 Incubation Program in February 2024, before USDe’s public market launch. The synthetic dollar maintains its $1 peg through a delta-neutral hedging strategy while using cryptocurrency collateral as primary backing.
USDe’s BNB Chain expansion builds upon its April deployment with new money market integrations, protocol partnerships, and ecosystem collaborations currently in development. These initiatives aim to increase USDe adoption across multiple blockchain networks beyond its initial Ethereum focus.
Ethena Labs recently encouraged community members to maintain their positions amid market volatility, suggesting that current conditions present opportunities for scaling into synthetic dollar positions. The company emphasized the hedged nature of USDe positions compared to leveraged trading strategies that face liquidation risks.
Related: Arthur Hayes Exits HYPE Position Weeks After Predicting 126x Surge
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
