High-tech venture capital firm YZI Labs has increased its interest in Ethena, the Stablecoin publisher behind USDE.
This investment will help Ethena continue its USDTB Stablecoin and institutional settlement layer while helping Ethena USDE (USDE) expand in the BNB chain.
While USDTB is supported by short-term financial assets, including BlackRock’s Buidl, Converge is an Ethereum virtual machine compatible chain focusing on real-world asset tokens.
The move supports YZI’s mission to “support an open, scalable digital dollar infrastructure that could serve as the backbone of efficiency and liquidity across the financial ecosystem.”
Guy Young, CEO of Ethena Labs, added:
“As USDE scales its exchanges, Defi protocols and global user base, that vision is becoming a reality.”
The adoption of Stablecoin was boosted by the momentum that President Trump is considered to be one of the most comprehensive and stable legislation ever, as the US Treasury estimated in April that the $29.5 billion market would rise to $2 trillion by 2028.
USDE Use Cases for Extending the BNB Chain
Formerly Binance Labs, Yzi first invested in Ecena through the Season 6 Incubation Program in February 2024 before USDE was released. USDE’s synthetic dollars are primarily supported by cryptocurrencies and are stabilized through a delta neural hedging strategy that keeps its value at $1.
According to YZI, the expansion of USDE in the BNB chain is already ongoing, based on its April deployment with new money markets, protocol integrations and ecosystem partnerships.
Related: ASIC makes licensing rules for Australian Stablecoin distributors
Since its launch, USDE has skyrocketed to $14 billion in market capitalization. Only tethers (USDT) and circle USDC (USDC) are driven at $171.5 billion and $73.9 billion, respectively. With the increased adoption of USDE, it can slice into USDT and USDC advantages and expand use across the crypto ecosystem.
USDE may be adopted by high lipid competitors
This has recently promoted rival Aster, the polymeric rival, a new decentralized permanent exchange platform set up to integrate USDE as part of its ecosystem, by YZI, which manages $10 billion worth of assets spread across Crypto, AI, and Healthcare.
Ecena has also won investment support from trillion dollar asset management companies Fidelity and Franklin Templeton, while Crypto VC company Dragonfly also supports Stablecoin Issuer.
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