Yzi Labs, a family office founded by Binance co-founders Changpeng “CZ” Zhao and Yi He, has been rebranded from Binance Labs, but has expanded its position at Ethena Labs.
As Ethena enters a new phase of growth, investments will arise, including expanding the footprint of the BNB chain. These include products designed to bridge crypto and traditional finance, such as USDTB, a Fiat-supported stubcoin under development, and products designed to converge in BlackRock’s connected security and institutional settlement layers built with partners.
Sold as “synthetic dollars,” USDE uses Bitcoin BTC, Ether (ETH) and Solana SOL (SOL) as backing assets, combining short, permanent futures positions and equivalent value in exchange to maintain a $1 PEG.
Released two years ago, the synthetic dollar surpassed a $10 billion supply milestone faster than other dollar-covered crypto assets.
“Since our investment team first met Guy (Young) in late 2023, Ethena has become the category deferencing of synthetic dollars that supports the yield,” said Dana Hou, investment partner at YZI Labs.
For users, development means more options for retaining and using digital dollars across centralized exchange and decentralized finance protocols. For institutions, products like Converge are intended to create a familiar payment layer for tokenized assets, and could potentially expand the adoption of financial infrastructure in the chain.
Read more: Ethena USDE surpasses BlackRock’s Bitcoin, EtherETF, $3.1 billion inflow
