Tech-focused enterprise capital agency YZi Labs has elevated its stake in Ethena, the stablecoin issuer behind USDe, which can 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 mentioned in an announcement on Friday.
USDtb is backed by short-duration treasury belongings, together with BlackRock’s BUIDL, whereas Converge is an Ethereum Virtual Machine-compatible chain targeted on tokenizing real-world belongings.
The transfer helps YZi’s mission to “help open, scalable digital greenback infrastructures that may function a spine of effectivity and liquidity for your entire monetary ecosystem.”
Ethena Labs CEO Guy Young added: “The holy grail of digital greenback distribution has at all times been embedding secure, yield-bearing belongings instantly into the core of the crypto financial system.
“With USDe now scaling throughout exchanges, DeFi protocols, and international consumer 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 some of the complete stablecoin legal guidelines so far.
USDe use instances to increase on BNB Chain
YZi, previously Binance Labs, first invested in Ethena by 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 by 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 mentioned.
Related: 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 information reveals. Increased adoption of USDe may enable it to slice into USDT and USDC’s dominance and broaden its use throughout the crypto ecosystem.
USDe might even see adoption on Hyperliquid competitor
It comes as YZi — which manages $10 billion value of belongings unfold throughout crypto, AI and healthcare — just lately promoted Hyperliquid rival Aster — a brand new decentralized perpetuals alternate platform that’s set to combine USDe as a part of its ecosystem.
Ethena has additionally gained funding help from trillion-dollar asset administration companies Fidelity and Franklin Templeton, whereas crypto VC agency DragonFly additionally backs the stablecoin issuer.
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