Ethena's USDe: YZi-Backed Stablecoin Redefining DeFi and TradFi Liquidity

YZi Labs, the family office of Binance founder Changpeng “CZ” Zhao, has deepened its strategic support for Ethena Labs, the developer of the synthetic dollar stablecoin USDe, as the protocol’s total value locked (TVL) surpassed $14.15 billion. This marks a significant milestone for Ethena, which has grown from a nascent project incubated by YZi Labs in 2024 to a key player in the stablecoin and real-world asset (RWA) sectors. YZi’s renewed backing includes increasing its stake in Ethena’s native token, ENA, and accelerating the adoption of USDe across centralized and decentralized finance ecosystems.

The partnership aligns with Ethena’s rapid expansion, including the launch of USDe on the BNB Chain and the development of USDtb, a fiat-backed stablecoin compliant with the U.S. GENIUS Act. USDe, now the third-largest dollar-pegged asset in crypto with a supply exceeding $13.94 billion, has demonstrated resilience through market volatility and is supported by a delta-hedged portfolio of Bitcoin and Ethereum. Ethena’s TVL has surged from $5.7 billion in July 2025 to over $14 billion, driven by its integration with major platforms like Binance, where USDe is now used as collateral for futures trading and yield-bearing assets in the Binance Earn program.

Binance’s integration of USDe, announced in September 2025, has further amplified the stablecoin’s reach. The exchange listed USDe/USDT and USDe/USDC trading pairs, with withdrawals enabled on September 10, and introduced a reward program for verified USDe holders. This move positions USDe as a competitive alternative to fiat-backed stablecoins, leveraging its crypto-collateralized model to offer yield generation while maintaining price stability. Binance’s 280 million users now have access to USDe’s utility, which includes margin trading, liquidity provision, and cross-chain interoperability.

YZi Labs’ support also extends to Ethena’s institutional-grade initiatives. The protocol is developing Converge, a settlement layer in collaboration with Securitize and BlackRock’s tokenization partners, to bring traditional finance (TradFi) assets on-chain. This effort underscores Ethena’s ambition to bridge decentralized and centralized markets, a vision echoed by Ethena CEO Guy Young, who stated that USDe’s scalability across exchanges and DeFi protocols is “becoming a reality”.

Despite the bullish momentum, Ethena’s native token, ENA, has faced short-term volatility, trading at $0.6666 as of September 2025—a 5% drop in the previous 24 hours. Analysts like Crypto Smith have highlighted the token’s potential for multi-fold growth, though such forecasts remain speculative. Meanwhile, Ethena’s fee generation has outpaced many competitors, with over $13.34 million in daily fees recorded in late September, placing it second only to Tether.

The strategic alignment between YZi Labs and Ethena reflects broader trends in tokenization and stablecoin innovation. With YZi’s backing, Ethena aims to solidify USDe’s role as a foundational asset in the crypto economy while expanding its regulatory compliance and institutional partnerships. As the stablecoin sector evolves, the integration of non-fiat-backed models like USDe could redefine liquidity and yield generation in both DeFi and TradFi contexts.