CZ’s YZi Labs Doubles Down on Ethena and USDe Stablecoin

[Ben Graham]

YZi Labs, the family office linked to Binance founder Changpeng Zhao, is putting more weight behind Ethena Labs, the company behind the synthetic dollar USDe. The timing is interesting. Binance only recently added support for USDe across a few of its services, and now YZi is coming in with deeper backing. It looks like they’re making a clear bet that Ethena is picking up real traction.

Ethena’s Numbers Are Climbing

This move from YZi Labs comes after USDe saw a big jump in both supply and usage. The stablecoin now has more than 13 billion dollars in circulation, and the total value locked has passed 14 billion. That kind of growth tends to catch attention. For YZi, this isn’t a new relationship. They were involved early on. But this time, they’re going further, giving Ethena more resources to grow across new platforms and roll out new features.

#ENA Update

YZi Labs (ex-Binance Labs) is boosting its backing of Ethena Labs to drive wider USDe adoption across CEXs and DeFi, expand into BNB Chain, and develop new products USDtb and Converge. Ethena’s TVL has now topped $13B. pic.twitter.com/TLWWHK9Jcn

— Iron Heart (@Crypto_Apha) September 19, 2025

Where Ethena Is Aiming Next

A big part of the plan is getting USDe onto more exchanges and plugged into more DeFi tools. That means more places to use it, more liquidity, and hopefully more everyday adoption. Ethena also wants to build out its presence on BNB Chain, which ties neatly back to the Binance connection. On top of that, they’re preparing to launch two new products. One is USDtb, which is a fiat-backed stablecoin designed to be regulatory-friendly. The other is something called Converge, which is pitched as a settlement layer built for institutions and real-world asset platforms.

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Why YZi Is Getting Louder About It Now

There’s a good chance YZi is trying to lock in more influence while USDe is still growing fast. Being early gave them a head start, but deeper involvement now could let them help shape what comes next. It also doesn’t hurt that Binance just rolled out USDe in places like futures markets and yield products. That wider usage likely gave YZi more reason to step in again, especially if they see even more demand building from those integrations.

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What Could Go Sideways

With all the momentum, there are still plenty of risks. Getting USDe to work well across many platforms takes more than just hype. The system it relies on to stay stable involves hedging and coordination, and those things don’t always go smoothly at scale. If anything breaks down or feels off, trust can slip quickly. And with new products like USDtb and Converge still in the works, there’s also the challenge of getting through regulatory hurdles without losing speed.

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What It Means for the Rest of the Market

Stablecoins are no longer just about being pegged to a dollar. These days, it’s also about what else they offer. Yield, flexibility, and how well they fit into both DeFi and TradFi matter just as much. The more USDe grows, the more pressure it puts on other stablecoins to keep up. If Ethena pulls this off, it could push the entire sector in a new direction.

What to Watch Going Forward

Now it’s a question of follow-through. Keep an eye on how quickly USDe spreads to more exchanges and apps. See if USDtb and Converge actually launch and if people use them. And watch whether this extra support from YZi turns into real growth or just headlines. Either way, Ethena just got a bigger spotlight.

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Key Takeaways

• YZi Labs, the family office linked to Binance founder CZ, is increasing its investment in Ethena Labs, the issuer of the USDe stablecoin.
• USDe now has over $13 billion in circulation and more than $14 billion in total value locked, helping draw renewed attention from YZi Labs.
• Ethena is working to expand USDe into more DeFi tools and exchanges, while also preparing to launch USDtb and a new product called Converge.
• The closer ties to Binance, including USDe integrations into yield and futures products, may be fueling YZi’s deeper involvement.
• Despite the momentum, Ethena still faces risks tied to scale, trust, and regulation as it pushes new products into the market.

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