YZi's Bet Signals Shift to Yield-Driven Digital Dollars

YZi Labs, the family office linked to former Binance CEO Changpeng Zhao, has deepened its investment in Ethena Labs, the developer of the synthetic dollar stablecoin USDe. The move, announced in late September 2025, follows Ethena’s rapid growth in market capitalization and adoption, with USDe now valued at $14 billion in total value locked (TVL) and a circulating supply of $14 billion. YZi’s renewed backing aims to accelerate USDe’s integration across centralized exchanges (CEXs) and decentralized finance (DeFi) platforms, expand its presence on BNB Chain, and support the development of new products like USDtb and ConvergeThe Block^[1].

Ethena’s USDe has emerged as the third-largest stablecoin by market cap, trailing only Tether’s USDT and Circle’s USDC. The synthetic dollar, which maintains its peg to the U.S. dollar through a delta-neutral hedging strategy, gained traction after its launch in early 2024. Its growth has been bolstered by strategic partnerships, including Binance’s recent addition of USDe as a spot trading pair and collateral asset for derivatives tradersCoinlaw.io^[2]. YZi Labs, formerly Binance Labs, was one of Ethena’s earliest backers, having selected it during its Season 6 Incubation Program in February 202499Bitcoins.com^[3].

The partnership aligns with Binance’s broader ecosystem strategy. BNB Chain, the blockchain platform operated by Binance, has become a key deployment target for Ethena, with the company launching money markets, protocol integrations, and liquidity pools on the chain in April 2025. Ethena CEO Guy Young emphasized the importance of embedding yield-bearing stable assets into the crypto economy, stating, “The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy”Cryptonews.com^[4].

YZi’s expanded support includes advancing Ethena’s USDtb stablecoin, which is fully backed by BlackRock’s BUIDL fund and designed to comply with the U.S. GENIUS Act. The firm is also co-developing Converge, an institutional-grade settlement layer in collaboration with Securitize and BlackRock tokenization partners. Converge aims to bridge traditional finance (TradFi) and blockchain by tokenizing real-world assets (RWAs) and enabling on-chain settlementCCN.com^[5].

Ethena’s financial metrics underscore its growing influence. The protocol has generated cumulative revenue exceeding $500 million by August 2025, with daily protocol fees surpassing $13 million. Over 6.09 billion USDe tokens are currently staked, offering yields of up to 20% for holdersThe Block^[6]. The project’s resilience was tested earlier in 2025 when German regulator BaFin forced Ethena to halt operations in the country due to compliance concerns. Ethena shifted its European operations to the British Virgin Islands, demonstrating its adaptability to regulatory challengesCryptonews.com^[7].

The partnership reflects a broader trend of institutional capital flowing into yield-bearing stablecoins as traditional fiat-backed alternatives struggle to generate sustainable returns. Ethena’s delta-neutral model allows it to capture crypto market yields while maintaining dollar stability, distinguishing it from bank-backed stablecoins. With $10 billion in assets under management, YZi Labs has positioned itself as a key player in shaping the future of digital dollar infrastructureCCN.com^[8].

YZi’s investment also aligns with regulatory developments in the U.S., including the passage of the GENIUS Act, which aims to standardize stablecoin regulations and reinforce the dollar’s dominance in global markets. Ethena’s strategic alignment with Binance, BlackRock, and other institutional partners positions it to capitalize on this regulatory momentum while navigating the evolving compliance landscapeThe Block^[9].