YZi Labs increased its stake in Ethena, the issuer of USDe. The firm said the capital will speed USDe distribution on both DeFi and CeFi. The statement came on Friday. Source: YZi Labs.
The move follows YZi Labs’ initial backing in February 2024 during its Season 6 Incubation Program. That support came before USDe launched publicly. YZi Labs positions the step as targeted support for stablecoin adoption.
The goal is straightforward: place USDe where liquidity lives. The plan focuses on direct integrations across exchanges and protocols. It centers on practical settlement and simple access.
USDe expansion on BNB Chain with new integrations
USDe expands on BNB Chain, building on its April deployment. YZi Labs said new money markets are in progress. It also flagged ongoing protocol integrations and ecosystem partnerships.
The BNB Chain push targets more venues for minting and settlement. Users should see more points to hold and deploy USDe. Protocols gain another dollar unit for collateral and liquidity.
The approach keeps the focus on distribution first. USDe joins existing BNB Chain rails to reach active users. The aim is broad, predictable access without friction.
How USDe works: delta-neutral hedge and $1 peg
Ethena structures USDe as a synthetic dollar. It backs the asset mainly with crypto collateral. A delta-neutral hedge offsets market direction to stabilize the peg near $1.
The design pairs spot exposure with derivatives. The hedge reduces net exposure during volatility. Execution relies on liquid venues and real-time rebalancing.
Guy Young, Ethena Labs CEO, said the distribution target clearly: “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.”
USDtb and Converge: treasury-backed unit and settlement layer
Ethena continues to develop USDtb alongside USDe. USDtb is backed by short-duration treasury assets. The basket includes exposure to BlackRock BUIDL.
Converge is Ethena’s EVM-compatible chain for institutional settlement. It targets tokenized real-world assets and familiar tooling. The focus is predictable finality and standard workflows.
Together, USDtb and Converge extend the stack. USDtb offers a treasury-backed digital dollar. Converge provides rails for on-chain issuance and settlement.
Policy and market size: GENIUS Act and 2028 outlook
Policy developments continue to shape stablecoin adoption. In July, President Trump signed the GENIUS Act. Stakeholders describe it as a comprehensive federal framework for stablecoins.
In April, the U.S. Treasury estimated the stablecoin market at $295 billion. It projected a rise to $2 trillion by 2028. The forecast underscores broader use in payments and settlement.
These signals matter for USDe, USDtb, and Converge. Designs face regulatory review while pursuing scale. The thesis remains distribution paired with compliance awareness.
Market share today: USDe versus USDT and USDC
Since launch, USDe has reached a $14 billion market cap, per CoinGecko. Tether USDT stands near $171.5 billion. Circle USDC is around $73.9 billion.
That positioning places USDe behind USDT and USDC by size. Its mechanism differs from fiat-redeemable models. Yet it targets the same settlement and liquidity roles on-chain.
Further USDe adoption could shift shares within pairs and pools. Different peg designs can fit different use cases. Protocols select units based on integration and stability needs.
Perpetuals angle: Aster plans USDe integration
YZi Labs recently promoted Aster, a decentralized perpetuals exchange. It competes with Hyperliquid in the perp market. Aster plans to integrate USDe within its system.
Perps venues need stable collateral and deep order books. USDe aims to meet those needs with its delta-neutral design. The target is predictable settlement for high-turnover traders.
This adds another USDe use case tied to active flow. It places the stablecoin inside derivatives liquidity. It also aligns with YZi Labs placement across trading venues.
Venture backing: Fidelity, Franklin Templeton, DragonFly
Ethena lists support from large asset managers. Fidelity and Franklin Templeton have invested. DragonFly also backs the issuer.
These names connect Ethena to institutional networks. They matter for USDtb distribution and Converge pilots. They also signal ongoing interest in stablecoin infrastructure.
YZi Labs reports about $10 billion in assets across crypto, AI, and healthcare. The firm continues to focus on stablecoin adoption and cross-chain access. The Friday update reiterated that direction. Source: YZi Labs.