Changpeng CZ Zhao's YZi Labs Contemplates Opening to External Investors Amid Growing Crypto Investment Demand

YZi Labs Mulls Over Opening to External Capital and Investors

YZi Labs, a $10 billion investment firm managed by Changpeng CZ Zhao, is considering the possibility of opening its doors to external investors and capital. Renowned for managing Zhao’s personal fortune and the funds from select early insiders of Binance, including co-founder Yi He, the firm has had its share of experiences with outside funding. In 2022 alone, the company witnessed an inflow of approximately $300 million from external sources, part of which was later returned due to the enormous scale of capital being managed.

Interest from External Investors Continuously Mounting

External investors have consistently shown interest in YZi Labs, according to Ella Zhang, the head of the fund. While speaking to the Financial Times, she expressed the company’s intentions of eventually converting to an external-facing fund, although she opined that the circumstances were not ripe yet. YZi Labs’ portfolio boasts a rich variety of prominent crypto and Web3 projects, including 1inch Network, Aptos Labs, Polygon, Sky Mavis, among others. Moreover, it also features notable infrastructure and security firms like LayerZero, Mysten Labs, and CertiK. Currently, YZi Labs has over 230 companies under its wide array of portfolios, as specified by Dealroom.

Interaction with the SEC

An intriguing revelation by Zhang was that the Securities and Exchange Commission (SEC) recently requested a private demo of companies backed by YZi Labs. This occurred after the chair of the SEC was unable to make it to the firm’s demo day at the New York Stock Exchange. This development is viewed as a signal of a more crypto-friendly approach from US regulators during Trump’s administration. “Paul Atkins and other commissioners, they are very open-minded,” she commented. Paul Atkins has occupied the position of the chair of the SEC since April 2025.

A Reflection on Zhao’s Departure and Current Status

Changpeng “CZ” Zhao, the founder of the firm, had sadly resigned from Binance last year after pleading guilty to the failure of implementing Anti-Money Laundering controls, leading to a four-month prison sentence. Presently, he is seeking a pardon from the US President, Donald Trump. Regardless of stepping down from his roles, Zhao continues to be Binance’s largest shareholder as of date.

YZi Labs Considering External Investors amidst Rising Demand

YZi Labs considering external investors comes in the wake of a rise in demand for crypto-native investment funds. For example, in June, Galaxy Digital saw an overwhelming response with fundraising exceeding the initial target of $150 million and accomplishing $175 million for its first externally backed venture fund.

Analyst Revelations and Returns from Bitcoin Infrastructure

In July, a renowned Bitcoin analyst, Willy Woo, made a surprising revelation that he had sold most of his Bitcoin investment. Woo justified his move by claiming that he could attain higher returns by investing in Bitcoin infrastructure. His argument was that early-stage Bitcoin startups potentially offered returns ranging from 100 to 1000 times. In conclusion, YZi Labs stands at an exciting juncture with the possibility of opening its doors to external investors while managing a diverse and robust portfolio. Simultaneously, the crypto world eagerly watches as more and more entities reveal the lucrative returns possible through Bitcoin infrastructure.