YZi Labs Prioritizes Long-Term Tech Impact Over Short-Term Gains, Shuns New Capital

YZi Labs, the investment vehicle formerly known as Binance Labs, has clarified its stance on external investments following reports by the Financial Times suggesting the firm is considering opening its $10 billion portfolio to outside investors. Changpeng Zhao (CZ), co-founder of Binance, and his team have emphasized that YZi Labs is not actively seeking new external capital, countering what they describe as "completely false" claimsBinance’s CZ Plans to Open $10B YZi Labs to Outside Investors^[1]. The firm, which manages assets for CZ and Binance co-founder Yi He, has instead focused on refining its investment strategy across emerging technologies such as artificial intelligence and biotechnologyZhao Converts Binance Labs into $10 Billion Family …^[3].

YZi Labs, rebranded from Binance Labs in early 2025, now operates as a family office with a mandate to prioritize long-term impact over short-term returns. The firm’s leadership, including Ella Zhang, head of YZi Labs, has stated that while external investors contributed $300 million in 2022, a portion was returned due to the existing scale of those investors’ fundsBinance’s CZ Plans to Open $10B YZi Labs to Outside Investors^[1]. Zhang highlighted that the firm is still building expertise in AI and biotech before welcoming new capital, underscoring the "big responsibility" of managing external assetsBinance’s CZ Plans to Open $10B YZi Labs to Outside Investors^[1]. This approach aligns with CZ’s broader vision of leveraging technology to address societal challenges, such as education and healthcareZhao Converts Binance Labs into $10 Billion Family …^[3].

The firm’s recent activities reflect its expanded focus beyond cryptocurrency. YZi Labs has invested in projects like Ethena’s USDe stablecoin, which now holds over $13 billion in total value locked, and Sahara AI, a blockchain-integrated AI platform. These moves underscore a strategic pivot toward decentralized infrastructure and yield-generating assets, with CZ playing an active role in mentoring founders and shaping investment decisionsZhao Converts Binance Labs into $10 Billion Family …^[3]. The firm’s portfolio now spans 46 projects across sectors including DeFi, gaming, and decentralized science, signaling a diversification away from its crypto-centric originsCZ’s YZi labs backs Sign as France probes Binance for fraud^[2].

CZ’s personal trajectory further contextualizes YZi Labs’ strategy. After stepping down as Binance CEO in 2023 and serving a four-month prison sentence in the U.S., CZ has shifted focus to impact-driven initiatives. His nonprofit Giggle Academy, a gamified education platform, and advocacy for regulatory clarity in the U.S. under the Trump administration highlight this shiftBinance’s CZ Plans to Open $10B YZi Labs to Outside Investors^[1]. While speculation about his return to Binance persists, CZ has not ruled out future roles in the crypto space but has emphasized his commitment to YZi Labs as a family officeBinance’s CZ Plans to Open $10B YZi Labs to Outside Investors^[1].

The firm’s rebranding and strategic realignment come amid broader regulatory scrutiny of Binance. French authorities have launched a judicial probe into Binance for alleged money laundering and tax fraud, while U.S. regulators continue to monitor the exchange’s compliance effortsCZ’s YZi labs backs Sign as France probes Binance for fraud^[2]. Despite these challenges, YZi Labs remains insulated from Binance’s legal battles, with CZ distancing the firm’s operations from his former exchange. The firm’s remote, headquarters-free structure and emphasis on AI and biotech investments further distinguish it from traditional venture capital modelsZhao Converts Binance Labs into $10 Billion Family …^[3].

YZi Labs’ current trajectory reflects a blend of caution and ambition. While it has no immediate plans to raise new capital, its growing influence in the crypto and tech ecosystems—through partnerships with BlackRock, Securitize, and BNB Chain—positions it as a key player in shaping the future of decentralized finance. The firm’s focus on compliance, as seen in its development of the GENIUS Act-compliant USDtb stablecoin, also aligns with evolving regulatory landscapes.