YZi’s Bet on Ethena: USDe’s $14B Rise Challenges Stablecoin Giants

YZi Labs, formerly Binance Labs, has significantly increased its stake in Ethena, the platform behind the synthetic dollar stablecoin USDe, as the project’s total value locked (TVL) surged to $14.153 billion as of September 19, 2025YZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. This move underscores YZi’s renewed commitment to scaling USDe’s adoption across both centralized exchanges (CEXs) and decentralized finance (DeFi) ecosystems. The firm highlighted plans to expand USDe’s utility, advance USDtb—a fiat-backed stablecoin aligned with the U.S. GENIUS Act—and develop Converge, a settlement layer designed to integrate real-world assets (RWAs) on-chainYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1].

Ethena’s growth has been meteoric since the public launch of USDe, with the stablecoin now ranking as the third-largest dollar-pegged asset in the crypto market, trailing only USDC and USDTYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. USDe’s market capitalization has reached $13.94 billion, driven by its delta-neutral hedging model, which generates yield for holders while maintaining stability without reliance on traditional banking infrastructureYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. The protocol’s TVL has grown from $5.7 billion in July 2025 to over $14 billion, reflecting strong institutional and retail adoptionYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1].

YZi’s support dates back to February 2024, when it first invested in Ethena through its Season 6 Incubation ProgramYZi Labs Boosts Support for Ethena as USDe Surpasses $13B^[2]. Nicola Wang, Investment Director at YZi Labs, praised Ethena’s innovative approach to stablecoin design, emphasizing its ability to generate yield through crypto-native mechanismsYZi Labs Boosts Support for Ethena as USDe Surpasses $13B^[2]. The partnership has since expanded, with Ethena leveraging YZi’s resources to deepen integration on BNB Chain, where it has launched new money markets and protocol integrationsYZi Labs Boosts Support for Ethena as USDe Surpasses $13B^[2].

Ethena’s strategic initiatives extend beyond USDe. The firm is preparing to launch USDtb, a GENIUS-compliant stablecoin backed by U.S. Treasuries and cash equivalents, in collaboration with Anchorage Digital BankUSDtb: The First GENIUS Act-Compliant Stablecoin Reshaping DeFi^[3]. This move aligns with the U.S. regulatory framework, which mandates transparency and reserve requirements for stablecoinsUSDtb: The First GENIUS Act-Compliant Stablecoin Reshaping DeFi^[3]. Additionally, Converge, a settlement layer co-developed with Securitize and BlackRock tokenization partners, aims to bridge DeFi and traditional finance by enabling institutional-grade RWA transactionsYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1].

Despite regulatory challenges, including a European regulatory standoff that led to Ethena shifting operations to the British Virgin IslandsYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1], the project has demonstrated resilience. The firm’s ability to adapt to regulatory pressures, coupled with robust financial backing from investors like Dragonfly, Fidelity, and Franklin Templeton, has reinforced confidence in its long-term viabilityYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. Ethena’s CEO, Guy Young, emphasized that USDe’s expansion across exchanges and DeFi protocols is “bringing the vision of yield-bearing digital dollars to reality”YZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1].

Market dynamics remain volatile, with the ENA token currently trading at $0.6666, down nearly 5% in the previous 24 hoursYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. However, analysts like Crypto Smith predict a potential 5x growth for Ethena, with ENA reaching $7 in the coming monthsYZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. BitMEX co-founder Arthur Hayes has forecasted a 51x increase by 2028YZi Labs increases stake in Ethena (ENA) as TVL tops $14B^[1]. These projections, while speculative, highlight the project’s perceived upside amid broader crypto market fluctuations.

YZi’s deepened partnership with Ethena aligns with Binance’s broader strategy to bolster BNB Chain’s ecosystem. Binance recently integrated USDe as a spot trading pair and collateral asset, further cementing its role in the digital dollar landscape. With USDtb’s compliance framework and Converge’s institutional focus, Ethena is positioning itself to compete with established stablecoins while addressing regulatory and scalability challengesUSDtb: The First GENIUS Act-Compliant Stablecoin Reshaping DeFi^[3].