YZi Labs, formerly Binance Labs, a major digital asset investment firm, announced today, September 19, that it has boosted its stake in Ethena Labs following the rapid expansion of Ethena’s synthetic stablecoin, USDe, which recently surpassed $14 billion in market capitalization. The move solidifies YZi Labs’ role as a key institutional backer of Ethena and highlights increasing interest in synthetic dollar solutions within the sector.
With a total value locked (TVL) in Ethena eclipsing $14 billion, according to DefiLlama, YZi Labs’ new funding will support three areas: integration of USDe across additional exchanges, technical expansion on BNB Chain, and development of new products such as the fiat-backed USDtb stablecoin and the Converge institutional settlement layer.
These initiatives are expected to enhance USDe’s adoption across both centralized and decentralized platforms, facilitating greater utility in the stablecoin and DeFi ecosystems.
“We’re thrilled to deepen our partnership with YZi Labs, a long-standing and strategic backer. The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy. With USDe now scaling across exchanges, DeFi protocols, and global user bases, that vision is becoming a reality,” said Guy Young, Founder & CEO of Ethena Labs.
Activity surrounding Ethena’s native token, ENA, has reflected significant market volatility amid this institutional backing. ENA experienced a sharp 24% decline from its recent peak of $0.8077 and is currently testing technical support at the 50-day exponential moving average (EMA).
In the previous week, dropped to an intraday low of $0.6546 and is trading around $0.67, reflecting a 4-5% decline on the day of the announcement and a 24% reduction from highs reached earlier in the month, according to CoinMarketCap.
Since the beginning of the year, Ethena Labs has shown a bold roadmap for 2025, and the market cap of USDe has been in continuous growth. Moreover, this year, they will introduce USDtb to the US banking system through Anchorage Digital. Today’s announcement highlights the significant attention their roadmap is receiving from a prominent investor in the cryptocurrency industry.
Read original story YZi Labs Expands Ethena Labs Stake as USDe Stablecoin Surges Past $14 Billion by José Rafael Peña Gholam at Coinspeaker.com
