The news that YZi Labs, formerly Binance Labs, is considering opening its doors to external investors has sparked major interest in the crypto and venture capital communities. Led by Binance founder Changpeng Zhao (CZ) and Ella Zhang, YZi Labs manages approximately $10 billion in assets. The possibility of extending beyond its role as a private family office into a full-fledged investment fund could reshape the Web3, AI, and biotechnology investment landscape.
The Evolution of YZi Labs
From Binance Labs to YZi Labs
Originally known as Binance Labs, the venture arm was rebranded to YZi Labs after CZ stepped down from Binance amid regulatory scrutiny. Today, it acts as a family office, primarily managing the wealth of CZ and co-founder Yi He.
Expanding Beyond Private Wealth
Ella Zhang, CEO of YZi Labs, revealed that the company is building expertise and may consider welcoming external investors once the team is fully established. This shift reflects a transformation from a private wealth manager to a global venture capital powerhouse.
Why External Investors Matter
Bringing external investors into YZi Labs would:
- Increase capital inflows into Web3 and AI-focused startups.
- Diversify risk for both CZ and outside stakeholders.
- Position YZi Labs as a competitor to major VC firms like a16z and Sequoia.
- Create a bridge between traditional finance and decentralized technologies.
YZi Labs Investment Focus
Web3 Leadership
YZi Labs has already built a strong reputation in Web3 innovation, backing blockchain infrastructure, DeFi platforms, and NFT ecosystems.
Expanding Horizons: AI and Biotech
Although Web3 remains the core focus, Zhang highlighted ongoing efforts to explore AI and biotechnology investments, signaling a strategic push to diversify.
Market Reactions and Strategic Implications
Crypto Market Context
The announcement comes at a time when:
- Bitcoin (BTC) trades around $115,000, with strong resistance near $118,000 and support at $110,500.
- Ethereum (ETH) holds above $4,450, with resistance at $4,600 and support at $4,200.
These levels highlight institutional interest in Ethereum’s ecosystem, which aligns with YZi Labs’ heavy ETH exposure.
Investor Sentiment
Opening YZi Labs to external investors signals confidence in the long-term growth of crypto markets, even amidst volatility. It also reflects a trend of crypto-native firms professionalizing their operations to attract institutional money.
On-Chain Insights: Ethereum’s Role
Ethereum remains central to YZi Labs’ thesis. On-chain data shows:
- Over 120 million ETH staked, reducing liquid supply.
- Transaction volumes up 15% QoQ, reflecting network utility.
- Layer-2 growth continuing with Arbitrum, Optimism, and Base gaining traction.
This strengthens the argument that Ethereum-based ecosystems are critical investment targets for the next decade.
Comparing YZi Labs With Competitors
| Investment Firm | Focus Areas | AUM (approx.) | Edge in Web3 |
|---|---|---|---|
| YZi Labs (CZ) | Web3, AI, Biotech | $10B | Strong ETH exposure, crypto-native |
| a16z Crypto | Web3, DeFi, Gaming | $7.6B | Silicon Valley connections |
| Sequoia Capital | Tech, Web3, AI | $85B | Legacy VC dominance |
| Paradigm | Web3, Layer-1s, DeFi | $8B | Deep crypto-native expertise |
What This Means for the Future
- Web3 Institutionalization: YZi Labs could accelerate the integration of crypto into global finance.
- AI and Biotech Synergy: Combining blockchain with AI and biotech could lead to groundbreaking innovations.
- Investor Opportunities: External investors may soon have a chance to ride alongside CZ’s vision.
Conclusion
YZi Labs’ potential move to open its fund to external investors marks a pivotal moment in the evolution of crypto-focused venture capital. As the firm builds credibility in Web3, AI, and biotech, it may become one of the most influential players in shaping the digital economy of the future.
