YZi Labs Expands Stake in Ethena Labs, Driving $USDe Growth
YZi Labs (formerly Binance Labs) is stepping up support for Ethena Labs, signaling stronger backing for the next generation of digital dollar protocols.
The plans are direct:
Expand $USDe adoption across centralized exchanges and DeFi platforms
Launch Ethena on BNB Chain
Develop new products USDtb and Converge
Strengthen growth with TVL now above $13B, according to DeFiLlama
— YZi Labs (@yzilabs) September 19, 2025
$USDe: The Synthetic Dollar Taking DeFi by Storm
Ethena’s $USDe is designed to be a synthetic dollar, independent from traditional banking rails.
Unlike centralized stablecoins, it generates yields through delta-neutral strategies, combining spot and futures positions to hedge volatility while still delivering returns.
That design makes $USDe attractive for both retail and institutional DeFi users. It’s not just a dollar substitute, it’s a yield-bearing asset integrated across lending, liquidity pools, and trading protocols.
On CoinMarketCap, $USDe currently holds a market cap above $3.2B, climbing rapidly in 2025 as adoption spreads.
TVL Growth Signals Strong Market Demand
Ethena’s total value locked (TVL) has crossed $13B, a sharp rise from $6B earlier this year.
This surge highlights just how quickly USDe and its ecosystem are becoming embedded into the DeFi landscape.
For perspective, Ethena now ranks among the top 5 DeFi protocols by TVL, rivaling established players like Aave and MakerDAO.
This rapid scaling also reinforces why YZi Labs sees Ethena as a key driver in the shift toward decentralized stable assets.
YZi Labs doubles down on $ENA
USDe is now the 3rd largest $USD asset in crypto with $13B+ supply & TVL, the fastest ever to $10B.
Backed since incubation, YZi is fueling Ethena’s next phase:
• USDe adoption across CEXs + DeFi
• Expansion on BNB Chain
• New… pic.twitter.com/8Pn5VsEhA4
— CryptoED (@Crypto_ED7) September 19, 2025
Strategic Expansion Into BNB Chain
One of the most significant steps in YZi Labs’ roadmap is extending Ethena’s deployment to BNB Chain.
BNB Chain brings access to a massive retail user base, with daily active wallets consistently ranking among the top across blockchains.
Integrating USDe here positions Ethena to tap into liquidity, DeFi yield markets, and cross-chain opportunities within the Binance ecosystem.
This also connects back to the origins of YZi Labs, founded by Binance co-founders CZ and Yi He, showing how their support is evolving from exchange-native products into broader Web3 infrastructure.
New Products: USDtb and Converge
Beyond scaling USDe, Ethena Labs is preparing to roll out two new products:
USDtb → A new stable asset designed to complement USDe, with enhanced liquidity and interoperability across DeFi and CEXs.
Converge → A protocol aimed at bridging centralized and decentralized finance, expanding yield opportunities and cross-market integrations.
Together, these additions strengthen Ethena’s role as more than just a stablecoin issuer, it becomes a full-stack synthetic dollar ecosystem.
ENA Token Gains From Ecosystem Growth
The ENA token, Ethena’s governance and rewards asset, has already benefited from ecosystem expansion.
Earlier this year, ENA spiked in value after Ethena’s TVL crossed $6B. With TVL now over $13B, investors are watching closely for another wave of upside momentum.
On CoinMarketCap, ENA is trading at $0.68 with a $900M market cap, cementing its place among top DeFi governance tokens.
As USDe adoption spreads across CEXs, DeFi, and BNB Chain, ENA stands to capture further value through governance rights, staking incentives, and fee participation.
Institutional Backing Adds Credibility
Institutional capital continues to flow into DeFi, but YZi Labs’ renewed investment carries unique weight.
As the family office of CZ and Yi He, YZi Labs isn’t just a random fund. Its roots trace back to Binance Labs, historically one of the most influential venture arms in Web3.
By expanding its stake in Ethena Labs, YZi Labs is signaling confidence in synthetic dollar protocols as the future of stable assets.
For Ethena, this credibility boost could draw in more liquidity providers, institutional partners, and retail trust.
Regulatory and Market Risks
Still, stablecoins remain one of the most heavily scrutinized sectors in crypto.
Regulators across the US, Europe, and Asia continue to assess how to classify synthetic dollar assets. At the same time, market volatility and yield compression pose risks to sustainability.
Ethena’s delta-neutral design reduces exposure, but ongoing improvements in risk management and transparency will be critical for long-term adoption.
Digital Dollars in Web3
YZi Labs’ investment is part of a larger trend: institutional capital moving toward mature, revenue-generating DeFi protocols.
The growth of USDe shows that users are demanding dollar-denominated stability that isn’t tied to banks, especially in an era where centralized stablecoins face increased regulatory pressure.
If successful, Ethena Labs’ model could set a blueprint for how synthetic dollars power the internet economy, from payments to trading to savings.
With TVL at $13B, a growing user base, and new products on the horizon, Ethena Labs is cementing itself as a major player in the stablecoin sector.
YZi Labs’ deeper stake sends a strong signal: USDe isn’t just another DeFi experiment. It’s a core building block for digital dollars, positioned to expand across CEXs, DeFi, and into BNB Chain.
For ENA holders, USDe users, and the wider ecosystem, the message is clear, the future of stablecoins is becoming increasingly synthetic, decentralized, and yield-bearing.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Filed under: Bitcoin - @ September 19, 2025 10:27 pm