Changpeng Zhao (CZ), Co-Founder of Binance, is considering opening YZi Labs, his $10 billion investment firm, to outside investors in the future.
YZi Labs, launched in January 2018 with backing from Binance, has grown into a major crypto investment firm. The firm manages money for CZ and a few early Binance executives, including CZ’s partner and co-founder, Yi He. In 2022, the firm accepted $300 million from outside investors, but later returned part of it, as many of those investors already managed large funds.
As reported by the Financial Times, YZi Labs invests in crypto startups, biotech, and AI, and is thinking about growing into a larger fund that accepts more outside investors. Ella Zhang, head of YZi Labs, said that many investors are interested, but the firm isn’t ready yet.
Ella Zhang said that they are still building their AI and biotech teams, and they need more expertise before taking on new investors, as it’s a big responsibility. She also noted a friendlier U.S. regulatory climate under Trump. Recently, the SEC requested a private demo of YZi Labs’ portfolio companies after missing their NYSE event.
Crypto entrepreneurs who left during Biden’s presidency are returning to Silicon Valley, as the administration, including SEC chair Paul Atkins, supports making the U.S. a crypto hub. “CZ said to me, ‘Your challenge is to deploy.’ It’s just so hard to find so many good enough assets to meet our criteria,” she recounted.
Ella Zhang didn’t name investors who gave money three years ago, but said YZi Labs returned some because they already managed huge funds. Many want to invest with them, but YZi isn’t rushing to sell projects, as meeting expectations is tough.
Recently, YZi Labs invested in “crypto treasury” firms that use public companies to raise money for tokens, backing a $1 billion deal with ex-Bitmain execs and a $500 million raise in July to turn a Nasdaq vape company into a BNB holder. Zhang said investing their $10 billion in crypto is challenging due to limited high-quality opportunities.
Ella Zhang said CZ’s vision is that robots will help people with tasks and use crypto wallets for transactions. YZi Labs, with its 12-person team, focuses on long-term investments, unlike typical venture capital firms that chase quick yearly profits.
CZ Seeks Trump Pardon
After stepping down as Binance CEO following his 2023 guilty plea for failing to prevent money laundering, CZ remains the exchange’s largest shareholder.
He is reportedly seeking a pardon from US President Trump, though his status is unconfirmed. Speculation about his return to Binance arose after he updated his X bio from “ex-Binance” to “Binance.”
Also Read: Binance Founder CZ Suggests Innovation as India’s Rupee Hits Record Low
