YZi Labs said today it has increased its stake and will keep backing Ethena Labs, the team behind USDe, as the stablecoin scales. The move builds on an earlier investment made when YZi Labs was still known as Binance Labs in February 2024.
Ethena’s USDe now has more than $13,000,000,000 in supply and a similar amount in TVL, and YZi Labs said it wants to help expand the stablecoin and related products across exchanges and DeFi platforms.
YZi Labs renews commitment
YZi Labs noted that it first supported Ethena during an incubation program before the product went public.
The firm said it was drawn to Ethena’s synthetic dollar model, which aims to keep value stable while generating yield without relying on traditional banks. Nicola Wang, YZi Labs’ Investment Director, said the team admired Ethena’s approach to building a crypto-native dollar.
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USDe’s rapid growth
USDe has grown fast, as supply and TVL have each passed $13,000,000,000, making USDe the third largest dollar asset in crypto by supply.
It also reached the $10,000,000,000 milestone faster than any previous dollar asset, according to the announcement. The asset now lists on major centralised exchanges and integrates with many DeFi projects.
Expansion on BNB Chain
YZi Labs highlighted Ethena’s push onto BNB Chain, and the work there follows an April deployment and includes new money markets and protocol links.
The fund said the fresh support will help Ethena roll out more integrations and partnerships on that chain. This effort aims to bring USDe to more users and applications outside its initial markets.
New product lines and partnerships
Part of the backing will support several product pushes, and Ethena is working on USDtb, a fiat-backed stablecoin that aims for GENIUS compliance.
It is also building Converge, a settlement layer created with securitise and tokenisation partners tied to major institutional players. These moves are framed as steps to connect real-world assets and TradFi liquidity with on-chain dollars.
Leadership responses
Ethena’s founder, Guy Young, said the additional capital and strategic help from YZi Labs matter for distribution. He said the team wants stable, yield-bearing digital dollars to live at the centre of the crypto economy and that USDe is beginning to reach that point.
Dana Hou from YZi Labs recalled first meeting Young in late 2023 and said Ethena has set a standard for yield-bearing synthetic dollars since early 2024.
A warning about scams
The announcement also came with a safety note, as earlier, 23pds, CISO at blockchain security firm SlowMist, flagged a phishing campaign that pretends to be YZi Labs.
The warning urges users to be cautious of impostor messages and to verify official channels before sending funds or clicking links. The security alert highlights risks that can follow high-profile funding news.
Observers will look for concrete updates on new integrations on BNB Chain. They will also watch for product launches around USDtb and Converge, and for partnerships that link Real World Assets to the protocol.
Security teams and users will track the phishing reports and verify communications to avoid scams tied to the funding news.
YZi Labs’ deeper backing extends a long-term relationship and comes as USDe scales rapidly. The funding aims to support technical growth, exchange and DeFi listings, and new products that blend on-chain dollars with real-world liquidity.