YZi Labs Invests Multi-8-Figure in Genius Trading, CZ Joins as Advisor

YZi Labs, the family office of Binance co-founders Changpeng Zhao and Yi He, has made a 'multi-8-figure' investment in Genius Trading. The investment is part of Genius Trading's strategy to build a privacy-focused, decentralized trading platform. The move is seen as a significant development in the onchain trading space.

Changpeng Zhao, also known as CZ, has joined Genius Trading as an advisor. His involvement underscores the project's potential to become a major player in the decentralized finance (DeFi) sector. Genius Trading aims to provide a self-custodial, cross-chain terminal to compete with traditional centralized exchanges.

Genius Trading's platform allows users to access liquidity across multiple blockchains without bridging assets or signaling trading strategies onchain. The platform's focus on privacy and full custody positions it as a potential alternative to Binance. This aligns with a broader trend of onchain adoption in the crypto industry.

Why Did This Happen?

YZi Labs' investment in Genius Trading reflects confidence in the project's vision for onchain trading. Genius Trading has already processed over $60 million in trading volume since its soft launch last October. The platform's user base is concentrated among onchain whales managing large amounts of monthly trading activity.

The investment comes after Genius Trading raised $7 million in prior funding rounds. A $6 million round in 2024 and a $1 million extension were led by CMCC and included participation from notable investors such as Balaji Srinivasan and Anthony Scaramucci.

Genius Trading was founded in 2022 by a core team that was still in college at Yale University. The project initially began as a block data legibility and explorer tool before evolving into a trading platform. The same core team has continued building together since inception.

How Does Genius Trading Operate?

Genius Trading uses a custom multi-party computation wallet and proprietary cross-chain routing logic to provide its services. The platform integrates directly with decentralized exchanges without bridging assets. Genius has no plans to launch its own blockchain and intends to work only with existing chains and DeFi protocols.

A central part of Genius Trading's technical roadmap is a privacy layer designed to shield large trading strategies onchain. The system, currently in beta, enables users to split large trades across hundreds of wallets to reduce traceability. A public beta of the privacy protocol is planned for the second quarter of 2026.

Genius Trading is headquartered in New York City and operates with a globally distributed team of 11 people. The startup plans to hire cautiously, potentially adding two to four additional employees in the near future. The company's co-founders are Armaan Kalsi, Ryan Myher, and Brihu Sundararaman.

What Analysts Are Watching Next?

Analysts are watching how Genius Trading competes in the onchain trading space. The trading 'terminal wars' describe a period of aggressive competition among platforms such as Axiom, GMGN, Photon, and Padre. These platforms are competing on customer acquisition costs and feature density.

Privacy is becoming increasingly important as users seek to build lasting financial activity onchain. Genius Trading's focus on privacy is seen as a strategic move to retain users who want to build their financial lives onchain. This could drive long-term adoption and growth.

The broader crypto market is also watching for signs of a potential 'super cycle' led by institutional adoption. Changpeng Zhao has predicted an imminent 'super cycle' in the crypto market, driven by regulatory clarity and institutional investment. Analysts are cautious but acknowledge the potential for long-term growth.

Institutional participation in crypto has increased, with products like Bitcoin spot ETFs attracting over $56 billion in new capital since 2024. This trend could support a broader adoption of crypto assets and contribute to a more mature market structure.

Regulatory developments in the United States have also played a role in shaping the crypto landscape. The SEC's removal of cryptocurrencies from its list of priority risks in 2026 has been cited as a positive development by CZ. This shift could lead to increased institutional activity and market confidence.

Investors are advised to monitor Genius Trading's progress and the broader market dynamics. The company's focus on privacy and institutional adoption aligns with key trends in the crypto industry. Analysts are watching for further developments in both the project and the market as a whole.