- Ethena’s USDe synthetic dollar has surpassed $13 billion in TVL, making it one of the fastest-growing stablecoins in history.
- YZi Labs reaffirmed its support for Ethena, noting its belief in its crypto-native model for yield-bearing synthetic dollars.
- Ethena is increasing utility across both CEXs and DeFi, expanding on BNB Chain, deploying new stablecoin products, and working with TradFi tokenization partners.
Ethena Labs has reached a major milestone as USDe, its synthetic dollar stablecoin, now has over $13 billion in total value locked (TVL), demonstrating rapid growth in both DeFi protocols and centralized exchange listings. This achievement follows renewed support from YZi Labs, which first invested in Ethena during its incubation stage when the protocol was still establishing its synthetic, delta-neutral model for USD-denominated crypto.
YZi Labs praised Ethena’s approach of creating yield without reliance on traditional banking institutions. The synthetic structure of USDe, which backs tokens with crypto assets and uses derivatives-based hedging, has helped it win trust among both retail and institutional users.
Meanwhile, USDe’s circulating supply now exceeds $13.9 billion, making it one of the top stablecoins by size and among the quickest to cross earlier thresholds. The Ether-based protocol’s growth has been bolstered by strong integrations with exchanges and DeFi applications, enabling more liquidity channels and usage scenarios. Users can now access USDe across a wide variety of platforms, increasing both visibility and practical utility.
YZi Labs’ Renewed Backing Amplifies Ethena’s Roadmap and Stablecoin Capabilities
YZi Labs, formerly known as Binance Labs, has stepped up its strategic support for Ethena, reaffirming confidence in the team led by Guy Young. Their early commitment came in 2024, before USDe had fully launched, recognizing Ethena’s promise in designing a synthetic stablecoin that combines yield and stability.
With the new backing, Ethena now has resources to accelerate its development of USDtb, a fiat-backed stablecoin project with compliance features, and Converge, a settlement layer built in partnership with tokenization firms including Securitize and BlackRock’s partners.
Part of this expansion includes deeper integrations on the BNB Chain, where Ethena is building new money markets and ecosystem partnerships. The goal is to broaden stablecoin usage across centralized exchanges (CEXs) and DeFi platforms. YZi Labs believes USDe is defining the category of yield-bearing synthetic dollars; this growth is not just about size but about pushing usability, regulatory alignment, and stable, sustainable yield.
How USDe Growth is Reshaping the Stablecoin Ecosystem with Synthetic Design and Cross-chain Reach
USDe’s model stands out because it does not behave exactly like traditional fiat-backed stablecoins. Instead, it is built with delta-neutral hedging, mixing crypto asset collateral, derivatives, and liquid stable assets, which helps it maintain peg stability while also offering yield options in the protocol. This design appeals to users who want yield and exposure without exclusive dependence on banks.
The recent cross-chain moves are also pivotal. Ethena has expanded to blockchain ecosystems beyond Ethereum, including deployments on Avalanche and integrations that allow USDe (& its staked version sUSDe) to be used within various DeFi apps as collateral or for trading/liquidity. These steps increase both the reach and utility of USDe.
Meanwhile, regulatory developments, such as the GENIUS Act in some jurisdictions, have shifted attention toward stablecoins that can offer yield or synthetic dollar exposure without breaching new restrictions. In that environment, Ethena appears to be well-positioned to benefit.
With TVL topping $13 billion and backing from YZi Labs reconfirmed, Ethena’s USDe is now making a serious case as one of the leading synthetic dollar projects in crypto. Its hybrid model—yield + synthetic backing + expanding cross-chain integrations—is showing strength. The challenges ahead will include maintaining peg stability, navigating regulatory scrutiny, and scaling integrations, but for now, Ethena is moving from promise toward proof.
