YZi Labs deepens investment in Ethena Labs to accelerate USDe stablecoin adoption and build scalable digital dollar infrastructure globally.
YZi Labs has announced it is deepening its investment and will continue providing strategic support to Ethena Labs. The protocol underpinning USDe is Ethena Labs and now, the third-largest and fastest-growing USD-denominated crypto asset of all time. Such a move indicates the commitment of YZi Labs towards the creation of open and scalable digital dollar infrastructures. These infrastructures are meant to enhance efficiency and liquidity in the entire financial ecosystem.
USDe Stablecoin Becomes 3rd-Largest Dollar Asset in Crypto
YZi Labs which was initially known as Binance Labs was one of the earliest investors of Ethena. This was sponsored in the Season 6 Incubation Program in early 2024, before Ethena was officially released as a product. By that time, the project had already exhibited its novel crypto-native synthetic dollar model, which is based on delta-neutral hedging to stabilize and provide sustainable yield.
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Moreover, the investment team at YZi Labs noted that they highly valued the unique approach that Ethena had towards developing the stablecoins. The design was built to produce yield without relying on the conventional banking systems which was a big departure to the customary models. This was a show of confidence in the potential of the technology used by Ethena as well as the team of people propelling the project.
USDe has since expanded speedily. It is currently the third-largest dollar asset in the crypto world and the fastest growing stablecoin to surpass more than $10 billion in supply. Also, Ethena currently boasts over $13 billion total value locked (TVL). The protocol has also been interoperable with the leading centralized exchanges and the most prominent decentralized finance (DeFi) applications.
Ethena and YZi Labs Target Digital Dollar Adoption Across CeFi and DeFi
The YZi Labs support is also offered when Ethena develops its presence on the BNB Chain. This expansion will be based on its early implementation in April and will encompass additional money markets, protocol integrations and ecosystem relationships already in progress.
Further on, Ethena will grow stablecoin utilities and progress USDtb, a fiat-secured stablecoin aiming at GENIUS compliance. Ethena is also initiating the settlement layer Converge, which was built in collaboration with Securitize and the tokenization teams at BlackRock. Converge is trying to on-chain traditional finance-grade real-world assets (RWAs).
The Founder and CEO of Ethena Labs, Guy Young, mentioned that he was excited about the tightened partnership. He opined, we are excited to further the relationship with YZi Labs, a long-term and strategic investor. Implementation of stable and yield-generating assets in the very fabric of the crypto economy has always been the holy grail of digital dollar distribution.
The TVL of Ethena is growing well and gaining strength in the crypto community at 13 billion. This increased working collaboration with YZi Labs is meant to drive more innovation and market expansion. Finally, it helps in the vision of developing a more efficient and liquid digital dollar infrastructure in future.
YZi Labs increased its investment in Ethena Labs. This shows the company’s confidence in Ethena’s digital dollar technology. Their main goal is to accelerate the use of USDe. They also want to expand the stablecoin’s role in both centralized and decentralized finance.
