Former Binance Labs YZi Increases Ethena Stake as USDe TVL Hits $13B — What Do They Know?

Core Insights - YZi Labs has increased its investment in Ethena Labs as USDe reaches a total value locked (TVL) of $13 billion, marking a significant milestone in the crypto market [1] - USDe has achieved the fastest growth trajectory in crypto history, surpassing competitors like Tether's USDT and Circle's USDC [2] - YZi Labs aims to support USDe's integration across various platforms and the development of new products, including a GENIUS Act-compliant stablecoin and an institutional settlement layer [2][4] Company Developments - YZi Labs initially supported Ethena through its Season 6 Incubation Program in February 2024, focusing on the innovative synthetic dollar concept [3] - Ethena has expanded its presence on the BNB Chain, with new money markets and partnerships being established since YZi's initial investment [4] - Ethena's protocol currently holds over $13 billion in total value locked, with ENA tokens trading around $0.67 and a market capitalization of nearly $4.59 billion [5] Regulatory Environment - Ethena's growth has faced challenges, particularly in European markets due to regulatory scrutiny over its synthetic dollar structure [5] - The German financial regulator BaFin mandated Ethena to implement a 42-day redemption plan following regulatory issues related to the EU's Markets in Crypto-Assets Regulation [6]