BNB News Today: YZi Labs Pours $1B into BNB Chain's Future, Prioritizing Ecosystem Over Profit

YZi Labs, the venture arm of Binance co-founders Changpeng Zhao (CZ) and Yi He, has announced a $1 billion "Builder Fund" to support projects building on the BNB Chain, including those that compete with Binance itself. The initiative, unveiled in October 2025, merges YZi Labs' EASY Residency program with BNB Chain's Most Valuable Builder (MVB) incubator to identify and fund developers in areas like DeFi, artificial intelligence, real-world assets (RWA), and decentralized science (DeSCI). The fund emphasizes long-term ecosystem growth over direct profit, with selected builders receiving up to $500,000 in funding and technical support from BNB Chain's core team Decrypt^[1].

The rebranding of Binance Labs to YZi Labs in January 2025 marked a strategic shift toward independence while maintaining close ties to Binance's ecosystem. YZi Labs now operates as a family-office-style venture firm, managing a $10 billion portfolio across Web3, AI, and biotechnology. Its backing of projects like PancakeSwap, Aster, and Axie Infinity underscores its commitment to fostering innovation that challenges traditional models. Yi He, co-founder of Binance, emphasized that the initiative aligns with broader goals to "enhance competition and innovation within the industry" TradersUnion^[2].

Notable projects supported by YZi Labs include PancakeSwap, a leading decentralized exchange on BNB Chain, and Aster, a decentralized perpetuals platform that recently surged past Hyperliquid in trading volume. CZ confirmed that Aster's team includes former Binance employees and that YZi Labs holds a minority stake in the project, though he stressed there is no "official endorsement or direct involvement" with Aster . Similarly, CZ clarified that while Hyperliquid co-founder Jeff participated in Binance Labs' 2018 incubation cohort, YZi Labs did not hold equity or tokens in Hyperliquid Blockonomi^[5].

The Builder Fund's launch coincides with BNB Chain's record-breaking performance, including over 26 million transactions in a single day and BNB surpassing XRP to become the third-largest cryptocurrency by market capitalization. BNB's price reached an all-time high of $1,336 in October 2025, driven by institutional interest and network upgrades like the Maxwell Hardfork Coinotag^[4]. Analysts attribute part of this growth to YZi Labs' ecosystem-driven initiatives, which have spurred developer activity and user adoption.

CZ has publicly defended YZi Labs against speculation about external fundraising, stating the firm is funded solely by his personal wealth and does not seek outside investors. He dismissed a Financial Times report suggesting YZi Labs might accept third-party capital, calling the claims "false" and emphasizing the firm's independence from Binance's regulatory history . Despite these assurances, critics question whether YZi Labs' BNB Chain-focused investments indirectly benefit Binance, given the co-founders' ongoing stake in the exchange.

The initiative reflects a broader industry trend of crypto-native incubators prioritizing ecosystem growth over short-term gains. YZi Labs' EASY Residency program, now integrated with MVB, offers 12-week in-person mentorship, funding, and access to Binance's 275 million users. Applications remain open on a rolling basis, with a focus on projects that "bring fresh perspectives and solutions" to the crypto space TradersUnion^[2].