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YZi Labs, the family office founded by Binance co-founders Changpeng “CZ” Zhao and Yi He, announced an expanded strategic investment in Ethena Labs, the developer of the synthetic dollar USDe.
⚡️CZ’S YZI LABS DOUBLES DOWN ON ETHENA
YZi Labs has increased its investment in #Ethena, driving $USDe adoption across more chains and helping build a new stablecoin. pic.twitter.com/u1nGruTIir
— Coin Bureau (@coinbureau) September 22, 2025
Strategic Backing for USDe
Previously known as Binance Labs, YZi Labs’ latest investment aims to accelerate the adoption of USDe across both decentralized and centralized platforms. The move also supports growth on BNB Chain, the launch of USDtb (a U.S. Treasury-backed stablecoin), and Converge, an Ethereum-compatible chain focused on real-world asset tokenization.
USDe has already surpassed $13 billion in total value locked (TVL), cementing itself as the third-largest dollar-linked asset after USDT and USDC. Unlike traditional stablecoins backed by reserves, USDe maintains its peg to the U.S. dollar through a delta-neutral hedging strategy that uses crypto assets as collateral.
Rising Institutional Demand
YZi Labs highlighted that the decision reflects the growing institutional demand for stablecoin solutions bridging traditional finance and crypto markets.
“This investment aligns with our mission to support open and scalable digital dollar infrastructure that can serve as the backbone of global financial ecosystems,” YZi Labs stated.
Ethena CEO Guy Young called the integration of yield-bearing assets into the crypto ecosystem the “holy grail of digital dollar adoption”, emphasizing its role in reshaping digital finance.
BNB Chain Expansion and Market Outlook
USDe’s rollout on BNB Chain, launched in April, is now expanding with money market integrations, protocol partnerships, and ecosystem collaborations. Meanwhile, USDtb provides institutions with a more traditional, Treasury-backed stablecoin designed for large-scale financial transactions.
Despite volatile crypto markets, USDe’s delta-neutral model has proven resilient, offering yield generation without dependence on banks, making it an attractive option during times of market turbulence.
YZi Labs’ renewed commitment signals a clear vote of confidence in Ethena’s role as a key player in DeFi’s future, setting a new benchmark for stable assets in decentralized finance.
