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Changpeng Zhao, better known as CZ, is considering opening his $10 billion family office, YZi Labs, to outside capital as the firm builds capacity and scales its investment strategy. The potential for a YZi Labs external investment has drawn interest from backers eager to align with Zhao’s capital and track record.
Currently, YZi Labs manages Zhao’s wealth alongside funds from early Binance executives, including co-founder Yi He. The company invests primarily in crypto start-ups while also targeting biotech and artificial intelligence ventures.
Chief executive Ella Zhang told the Financial Times that the firm could eventually convert into an external fund once its internal capabilities mature. She noted there is steady interest from outside backers, but emphasized that timing is crucial.
Opening to outsiders would be a “huge responsibility,” Zhang said, stressing that the near-term focus is on hiring and deepening expertise in AI and biotech rather than rushing into a YZi Labs external investment.
The 12-person team takes what Zhang called a “super long-term” view, reflecting Zhao’s preference for scale and patience over short-term returns.
If YZi Labs pursues a YZi Labs external investment strategy that includes US backers, it would likely trigger stricter oversight. The move would come against the backdrop of Washington’s shifting stance toward digital assets, which some industry figures view as more accommodative.
Zhao co-founded Binance in 2017 and built it into the world’s largest cryptocurrency exchange. His majority stake cemented his position as one of the sector’s wealthiest founders.
But his journey has been marked by regulatory setbacks. In 2023, Zhao pleaded guilty to a US criminal charge linked to anti-money laundering failures. Binance also admitted to sanctions violations, agreeing to pay more than $4.3 billion in penalties. US officials alleged the platform had failed to report suspicious transactions tied to crimes and terrorist groups.
Zhao resigned from Binance and served a four-month sentence. Since then, he has sought a presidential pardon in the United States which is an effort that could shape the path forward for any YZi Labs external investment involving American capital.
Despite Zhao’s legal history, YZi Labs continues to attract regulatory and institutional attention. Zhang revealed that the US Securities and Exchange Commission requested a private showcase of YZi-backed portfolio companies after its chair was unable to attend a demo day at the New York Stock Exchange.
She also noted that founders who had left the United States in recent years are now returning to Silicon Valley. The shift, she said, reflects an administration intent on promoting the US as a crypto hub. Some commissioners, Zhang added, appear “open minded” to innovation.
This environment could play a pivotal role in the timing of a YZi Labs external investment, as regulatory openness may make it easier for the firm to welcome US-based limited partners in the future.
Deploying Zhao’s vast capital pool remains a challenge. Still, YZi Labs is steadily broadening its portfolio. About 70% of its assets remain in digital assets, but interest in artificial intelligence, biotech, and robotics is growing.
The firm has leaned heavily into innovative crypto treasury structures. One strategy involves using public companies to raise funds for token purchases. For instance, YZi is pursuing a $1 billion deal with former Bitmain executives. In July, it also backed a plan to convert a Nasdaq-listed vape manufacturer into a BNB-focused treasury vehicle.
These experiments underline YZi’s willingness to blend traditional finance structures with digital asset strategies, even as it evaluates when and how to pursue a YZi Labs external investment.
For crypto investors watching from the sidelines, the question is not if but when YZi will open its doors to outside capital. With Zhao’s wealth anchoring the platform, any YZi Labs external investment move could reshape flows into crypto venture markets.
By pacing its growth and focusing first on internal expertise, YZi Labs signals caution rather than haste. But with regulatory interest rising, and demand from backers already apparent, the timeline for an external fund could accelerate.
Until then, YZi Labs’ trajectory in crypto, biotech, and AI offers a glimpse into how one of the industry’s most prominent figures is repositioning after regulatory battles and why the eventual YZi Labs external investment may be one of the sector’s most closely watched developments.
