Binance Venture Arm That Acts as CZs Personal Office Mulls Accepting New Investors

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Key Takeaways

YZi Labs spun off from Binance in January, but remains under the control of Changpeng Zhao (CZ). However, the company is open to raising capital from outside sources. Originally focused on crypto and DeFi, YZi Labs has increasingly branched out into other sectors.

As a private investment company that spun off from Binance at the start of 2025, YZi Labs is likely majority, or entirely owned by Binance insiders, including Changpeng Zhao (CZ) and his inner circle.

However, the crypto investment company is considering opening up to external investors, marking a departure from the private ownership model it has pursued so far.

What Is YZi Labs? CZ’s Personal VC Company

In 2018, Binance launched Binance Labs, which quickly emerged as one of the most prominent startup incubators and venture capital investors in crypto and blockchain.

Although it initially operated as a straightforward subsidiary, Binance Labs has gained more independence in recent years, culminating in its rebrand as YZi Labs this year.

The spinoff has allowed CZ to take a more active role at the company, sidestepping a U.S. injunction that bars him from serving any executive or management role at Binance.

On its website, YZi Labs currently lists CZ as an intern, a rather tongue-in-cheek designation considering he likely owns a controlling stake in the firm.

Like Binance itself, YZi Labs exact ownership structure isn’t public knowledge, but it probably reflects that of the parent exchange.

CZ has downplayed rumours that he holds a 90% stake in Binance, but beyond that, estimates vary. Meanwhile, reports suggest his co-founder and long-term partner Yi He retains at least a 10% share.

Whatever CZ’s ownership status may be, YZi labs has broadly favored his personal investment preferences, directing funds toward the BNB ecosystem and projects he has endorsed like Aster.

$10 Billion to Spend

According to Head of YZi Labs, Ella Zhang, the firm was directed to invest $10 billion by CZ when he was still Binance’s CEO in 2018.

“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 told the Financial Times recently.

While Zhang may have her hands full deploying $10 billion, Binance/YZi Labs has thrown its weight behind dozens of crypto projects, including such well-known platforms as Polygon, PancakeSwap, and Axie Infinity. More recently, it has backed Ethena’s stablecoin platform.

Future Directions

Although it maintains a strong focus on crypto and decentralized finance, YZi Labs has increasingly branched out into AI, DePINs and novel blockchain applications.

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“In AI and biotech we’re still early,” Zhang stated. However, “when we have that expertise […] we’ll open up for external investors.”

“There’s always a lot of external investors interested and we will eventually consider turning it into an external-facing fund,” she said, before adding: “We just think it’s not there yet.”

Any move to raise capital from outside sources would innevitably dilute CZ’s ownership of YZi Labs. But for now, the company remains closed to all but a close circle of associates.

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