CZ’s YZi Labs may open $10bn portfolio to outside investors

YZi Labs, the $10bn investment firm that manages capital for Binance co‑founder Changpeng “CZ” Zhao and a small group of early executives, is considering opening to outside investors, Ella Zhang told the Financial Times. Spun out of Binance in January, the San‑Francisco‑based group backs crypto, AI and biotech.

Zhang, head of YZi Labs, said external interest has been persistent and that converting to an outward‑facing fund is on the table when the team has the confidence and domain depth in newer focus areas. She added that the firm’s immediate priority is building out specialist capabilities in AI and biotech alongside its established digital‑asset practice.

The firm took in about $300 million from outside investors in 2022 before later returning part of those funds, according to Zhang. Today, YZi Labs primarily invests the wealth of CZ and a small cohort of early Binance leaders, including co‑founder Yi He. Digital assets account for roughly 70% of activity, with growing attention to AI and robotics. The core team numbers around a dozen people and approaches deployment on a “super long‑term” basis rather than chasing annual multiples.

We will eventually consider turning it into an external‑facing fund. We just think it’s not there yet,

said Ella Zhang in an interview with the Financial Times.

Opening to US investors, if YZi chooses that route, would invite greater regulatory scrutiny. Zhang said the SEC recently asked for a private demo showcase of portfolio companies after its chair was unable to attend YZi’s demo day at the New York Stock Exchange last month. She interpreted this as a sign of a friendlier stance toward crypto within the current US policy backdrop. Zhang added that founders who left during the previous administration are returning to Silicon Valley as the environment warms.

Zhang outlined the deployment challenge at YZi’s current scale. With a mandate around $10 billion, and potentially more, finding enough high‑conviction assets that meet the firm’s criteria is difficult. YZi has recently backed several “crypto treasury” structures that use public companies to raise capital for token exposure. That includes support for a $1 billion transaction led by former Bitmain executives and, in July, leading a $500 million raise to convert a Nasdaq‑listed vape manufacturer into a BNB treasury company. She said more than 50 teams have pitched similar token‑treasury plans amid this summer’s fundraising burst.

YZi Labs formally emerged on January 23, 2025, when Binance Labs rebranded to reflect greater independence from the exchange and a broader remit across Web3, AI and biotechnology. Zhang returned to lead the platform and overhauled its incubation program into a 12‑week in‑person residency. The organisation cites a portfolio spanning 250+ companies across 25+ countries, and it continues to collaborate with the BNB Chain MVB program.

For context, Changpeng Zhao co‑founded Binance in 2017 and became one of crypto’s wealthiest figures. In 2023, he pleaded guilty to a US criminal charge related to anti‑money‑laundering controls as part of a wider settlement in which Binance admitted offences and agreed to pay more than $4.3 billion in penalties. Zhao resigned, served four months in prison and has sought a presidential pardon. He no longer manages Binance but remains its largest shareholder and a prominent advocate for BNB.

Zhang declined to name the limited group of outside investors from 2022, saying the firm later “partially returned” their capital because the pool already under management was substantial. Zhang confirmed that demand from external investors remains strong but stressed the firm is not in a hurry to exit positions and must balance outside expectations with its long-term approach.