Key Takeaways
- YZi Labs was one of Ethena’s earliest backers.
- Ethena is the third-largest stablecoin with a market cap of $14.03 billion.
- YZi Labs currently manages over $10 billion in assets globally.
Changpeng Zhao’s (CZ) venture capital arm, YZi Labs (formerly Binance Labs), has doubled down on stablecoins with a renewed investment in Ethena Labs, the protocol behind the synthetic dollar USDe.
The move comes as CZ simultaneously promotes his Hyperliquid rival, Aster—another platform set to integrate Ethena’s USDe as part of its ecosystem.
Backing Ethena
As per the announcement, YZi was one of the earliest backers of Ethena, having participated in its Season 6 Incubation Program back in February 2024.
This was before Ethena had gone public with its products.
Dana Hou, Investment Partner at YZi Labs, noted:
“Since our investment team first met Guy in late 2023 and backed Ethena in early 2024, Ethena has become the category definer for yield-bearing synthetic dollars.“
YZi also notes USDe to be the third-largest and fastest-growing U.S. dollar-denominated crypto in asset history.
Ethena’s USDe currently ranks as the third-largest stablecoin by market cap with $14.03 billion.
It trails far behind Circle’s USDC in second with $74.28 billion, but sits comfortably ahead of Dai (DAI) in fourth position with $5.36 billion.
The project’s native crypto, ENA, is trading down 4.9% for the day at $0.66 with a market cap of $4.69 billion, ranking it 31st amongst the top digital assets.
Digital Dollars
YZi Labs, which currently manages over $10 billion in assets globally, says the commitment underscores its mission to “support open, scalable digital dollar infrastructure,” that can power and underpin “the entire financial ecosystem.”
Other notable backers of Ethena Labs include Franklin Templeton, Fidelity, Dragonfly, Bybit, and others.
Indeed, 2025 is the year of the stablecoins as demand for digital dollars reaches an all-time high.
Since January 2025, the global stablecoin market cap has increased from roughly $204 billion to $305 billion as of Sept. 19.
Now, with Ripple’s RLUSD, World Liberty Financial’s USD1, and others joining the race amid favorable regulatory conditions in the U.S., the future of dollar-denominated stablecoins has never looked brighter.
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Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
