YZi Labs Joins $135 Million Funding Round for Digital Asset’s Canton Network

YZi Labs, a venture capital and incubation firm, has joined a consortium of regulated and crypto-native players in funding Digital Asset’s Canton Network, a blockchain designed to integrate Wall Street-scale operations with on-chain privacy and composability. On July 3, YZi Labs announced its participation in Digital Asset’s $135 million Series E round, which also attracted significant investment from traditional finance giants such as Goldman Sachs and Citadel Securities.

This investment follows Digital Asset’s initial funding reveal on June 24 and positions YZi Labs alongside some of the most influential institutions in traditional finance. The Canton Network, a public Layer 1 blockchain, aims to balance institutional compliance with decentralized infrastructure. The convergence of these companies in the multimillion-dollar funding round signifies a strategic alignment between crypto builders and traditional finance gatekeepers.

Canton Network’s configurable privacy model has already processed over $1.5 trillion in monthly tokenized U.S. Treasury repo activity, indicating that regulated finance is ready to embrace blockchain technology, albeit with certain conditions. This investment by YZi Labs can be seen as a strategic move to participate in the growth of blockchain infrastructure that meets Wall Street’s demands. Traditional finance has historically viewed public blockchains with skepticism due to concerns over transparency, while private chains have remained isolated and cumbersome.

Canton Network’s configurable privacy model addresses these concerns by allowing institutions to control data visibility without sacrificing interoperability. This makes Canton an attractive option for tokenizing real-world assets at scale, which is why YZi Labs, along with Goldman Sachs and Citadel, sees it as a crucial component in the future of financial infrastructure.

With the $135 million capital injection, the Canton Network plans to accelerate its expansion in three key areas: infrastructure scalability, faster onboarding for regulated entities, and deeper interoperability between applications. The network’s roadmap for the next 12 to 18 months includes new live deployments, global market expansion, and more seamless application-level composability.

“This investment from YZi Labs reinforces the growing demand for blockchain infrastructure that meets the rigorous standards of global financial markets,” said Yuval Rooz, Co-Founder and CEO of Digital Asset. “With this new backing, we’re advancing our mission to bring trillions of dollars more in real-world assets on-chain, creating a more connected and efficient financial ecosystem.”

YZi Labs’ involvement in this funding round also signals a strategic pivot under its rebrand from Binance Labs. Since Changpeng Zhao stepped back from Binance’s exchange operations, YZi has focused on infrastructure that bridges crypto and traditional systems. Its March investment in Plume Network, a modular blockchain for real-world assets, mirrors the Canton playbook by enabling institutions to tokenize a wide range of assets, from carbon credits to private equity.

Similarly, YZi Labs’ backing of AI-data startup Vana and token distribution platform Sign earlier this year reveals a pattern of funding infrastructure that supports mass adoption rather than chasing speculative DeFi trends. The firm claims to manage over $10 billion in assets globally, underscoring its commitment to building the foundational layers of the crypto ecosystem.