Ethena’s USDe Emerges as DeFi-TradFi Bridge Amid CZ-Backed Expansion

YZi Labs, the investment vehicle established by Binance co-founder Changpeng Zhao and former colleague Yi He, has significantly increased its stake in Ethena Labs, the protocol behind the synthetic stablecoin USDe. This move follows USDe’s market capitalization surging to over $14 billion, positioning it as the third-largest dollar-pegged stablecoin globally, trailing only USDT and USDCYZi Labs Expands Ethena Labs Stake as USDe Stablecoin Surges^[1]. The investment aims to expand USDe’s utility across centralized and decentralized finance (DeFi) platforms, enhance technical integration on the BNB Chain, and develop new products such as USDtb—a fiat-backed stablecoin—and Converge, an institutional settlement layerYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[2].

Ethena’s CEO, Guy Young, emphasized that USDe’s growth aligns with the vision of embedding yield-bearing assets into the crypto economy. “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,” Young statedBinance Co-founder CZ's YZi Labs Bolsters Investment In Ethena …^[3]. The protocol’s total value locked (TVL) has surged from $5.7 billion in July 2025 to $14.15 billion, reflecting rapid adoptionCZ's Family Office Deepens Stake in Ethena Labs as USDe^[4].

However, Ethena’s native token, ENA, has experienced significant volatility. Despite institutional backing, ENA’s price dropped 24% from its peak of $0.8077 to around $0.67, with analysts attributing the decline to broader market downturns and short-term selling pressureEthena (ENA) Price Drops 70% in 2025 — More Losses Ahead?^[5]. Technical indicators show ENA testing the 50-day exponential moving average (EMA) and facing critical support levels at $0.44–$0.47. A breakdown below these thresholds could trigger further declines, potentially reaching $0.35, representing a 37.5% loss from current levelsENA’s Price Drop: Opportunity or Risk? Key Support Levels to Watch^[6].

YZi Labs’ renewed support coincides with Ethena’s expansion into regulatory-compliant markets. The protocol plans to launch USDtb, a GENIUS Act-compliant stablecoin, through Anchorage Digital, leveraging its federal banking charter to ensure onshore complianceEthena's USDtb Set to Be First GENIUS Act …^[7]. This development positions Ethena to bridge DeFi and traditional finance (TradFi), with Converge—a settlement layer co-built with Securitize and BlackRock-affiliated partners—aiming to facilitate institutional-grade real-world asset (RWA) tokenizationCZ's YZi Labs Expands Investment in Ethena Labs for USDe …^[8].

Analysts remain divided on ENA’s long-term prospects. While some predict a potential 5x–51x growth by 2028 due to Ethena’s innovative synthetic dollar modelEthena (ENA) Loses Key Support Level, What’s Next?^[9], others caution that market turbulence and regulatory risks could hinder adoption. Ethena’s ability to maintain USDe’s $1 peg during volatile periods and navigate geopolitical uncertainties will be critical to its successEthena’s Future in Question: Could ENA Drop by 50% in Early 2025^[10].