Skip to content
- YZi Labs expands Ethena stake as USDe supply surpasses $13B, cementing its role as a core backer.
- Ethena gears up to launch USDtb and Converge, driving stablecoin growth across global markets.
- The move signals strong trust in a crypto-native dollar system bridging traditional and digital finance.
USDe supply has exceeded 13 billion, and YZi Labs has increased its ownership in Ethena Labs. On September 19, the venture firm announced the expansion. It was one of the first incubators of Ethena prior to the launch of USDe in February 2023. The action strengthens the role of YZi Labs as a fundamental supporter of the synthetic dollar system.
The USDe supply and the overall value locked were over 13 billion this month. The milestone demonstrates high adoption in the global exchanges and DeFi platforms. Ethena is now in a position to launch its second wave of products, such as USDtb and Converge. The increased role of YZi Labs is an indication of trust in this growth cycle.
Expanding USDe Integration Across Markets
The details regarding the new investment amount have not been disclosed. YZi Labs identified three priorities in deploying capital. The company will improve the USDe integration on centralized and decentralized exchanges. It will also speed up adoption on BNB Chain. Some of it will be allocated for the development of flagship products.
USDtb will be a fiat-backed stablecoin that aims to become GENIUS compliant. Converge is being developed in collaboration with the tokenization partners of Securitize and BlackRock. It will act as an institutional settlement layer, allowing real-world assets to be transferred to on-chain. The two projects will increase the utility of the USDe within the traditional and online markets.
Also Read: Chainlink CCIP Cross-Chain Tokens Set New Standard for Stablecoin Transfers
Guy Young, the founder and CEO of Ethena Labs, said that the partnership was necessary to achieve long-term objectives. He explained that stable and productive assets are the base of a stable crypto economy. Young added that this vision is becoming more of a reality as USDe scales across exchanges and DeFi protocols.
YZi Labs’ Global Portfolio and Strategic Reach
YZi Labs has over $10 billion of assets in the world. It has more than 300 ventures on six continents. More than 65 companies have participated in its incubation programs. One of its most noticeable digital finance bets is Ethena.
Major institutional investors are also among the supporters of Ethena. The supporters are Dragonfly, Fidelity, Franklin Templeton, Binance Labs, Bybit, and OKX. Their participation is an indicator of an overall trust in the USDe and Ethena as participants in the stablecoin markets in the long term.
The recent action of YZi Labs highlights the will to make Ethena stronger. The increased stake, with the increasing adoption and new products being developed, points to the belief in a crypto-native dollar system. The move is an indicator of intention to develop financial infrastructure connecting the old markets with blockchain innovation.
Also Read: Ripple and BDACS Partner to Boost Institutional Crypto Custody in South Korea
