CZ's Family Office Doubles Down on Ethena Labs Amid USDe Growth
YZi Labs increases its investment in the stablecoin project as USDe's supply surpasses $13 billion, marking a significant milestone in the synthetic dollar's growth.
Binance co-founder Changpeng "CZ" Zhao's family office, YZi Labs, has deepened its investment in Ethena Labs, the team behind the USDe stablecoin. This move comes as USDe has rapidly become the third-largest USD-denominated crypto asset, boasting a circulating supply exceeding $13 billion.
Ethena Labs is also developing USDtb, a fiat-backed stablecoin, and Converge, an institutional settlement layer in collaboration with Securitize and partners connected to BlackRock.
USDe, dubbed a "synthetic dollar," maintains its $1 peg using a combination of bitcoin (BTC), ether (ETH), and Solana (SOL) as backing assets, coupled with short perpetual futures positions on exchanges.
Key Takeaways:
- YZi Labs' increased investment signals confidence in Ethena Labs and its USDe stablecoin.
- USDe's rapid growth highlights the increasing demand for yield-bearing synthetic dollars.
- Ethena's expansion into BNB Chain and development of institutional products like Converge aims to bridge crypto and traditional finance.
What this means for users:
More options for holding and utilizing digital dollars across both centralized exchanges and decentralized finance (DeFi) protocols are becoming available.
What this means for institutions:
Products like Converge are designed to offer a familiar settlement layer for tokenized assets, potentially driving broader adoption of on-chain financial infrastructure.
Investment Considerations
As always, investors should consider their risk tolerance and investment timeline before making allocation decisions. Bitcoin remains a volatile asset despite increasing institutional adoption.
This article is for informational purposes only and should not be considered investment advice. Always consult with a qualified financial advisor.
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