Changpeng Zhao’s YZi Labs ‘deepens’ Ethena bet – What it means for ENA

Key Takeaways

Why did YZi Labs back Ethena again?

Early investor reinforced support as USDe supply hit $13B and TVL reached $14.22B, signaling strong stablecoin adoption.

What’s next for the ENA price?

ENA failed at $0.85 resistance, dropped 35% in two weeks, and risks a deeper correction if support breaks. Traders eye recovery catalysts.

YZI Labs, the venture capital firm owned by former Binance CEO Changpeng Zhao, has expanded its investment in Ethena [ENA], the protocol behind USDe.

The move aligned with Yzi Labs’ focus on building digital dollar infrastructure. The firm has described these assets as central to providing liquidity and efficiency across the crypto market.

Early ties and renewed support

The YZi Labs–Ethena relationship is not new. The venture capital firm was among Ethena’s earliest backers, having invested in 2024 before the protocol’s public launch.

As for now, the latest investment amount remained undisclosed.

The renewed backing comes amid Ethena’s rapid growth.

USDe has grown into the third-largest stablecoin, surpassing $13 billion in supply at press time.

Ethena’s total value locked climbed to $14.22 billion, while its Q3 report showed $9.25 million in returns, its highest so far this year.

Nicola Wang, Investment Director at YZi Labs, said the firm had been drawn to Ethena’s crypto-native design from the outset.

She highlighted that Ethena’s synthetic dollar model generates yield without relying on banks.

Wang added that its long-term vision made it worth deeper support.

Ethena eyes expansion with Converge and USDtb

Ethena has been actively extending its reach.

In April, it launched on BNB Chain, opening the door to new money markets, protocol integrations, and ecosystem partnerships. This latest backing from YZi Labs is expected to accelerate those efforts.

The protocol is also preparing to scale USDtb, a fiat-backed stablecoin designed to comply with the U.S. GENIUS Act approved earlier this year.

Alongside this, Ethena is developing Converge, a settlement layer built with Securitize and BlackRock’s tokenization partners, aimed at bringing institutional-grade real-world assets (RWAs) on-chain.

Guy Young, Founder and CEO of Ethena Labs, said

“The holy grail of digital dollar distribution has always been embedding stable, yield-bearing assets directly into the core of the crypto economy. With USDe now scaling across exchanges, DeFi protocols, and global user bases, that vision is becoming a reality.”

ENA struggles despite investment

Despite the positive momentum, Ethena’s native token ENA fell more than 8.5% in 24 hours, according to CoinMarketCap data. The decline followed a failed breakout above $0.85 resistance on the 9th of September.

Over the last two weeks, the token has recorded a 35% drawdown.

At the time of writing, ENA was trading at key support. A breakdown below this level could signal further correction ahead.