Yzi Labs, the investment arm of Changpeng “CZ” Zhao, is exploring plans to open $10 billion in funds to outside investors, showing a move to attract wider participation in the booming crypto ecosystem. It was personally managed by Zhao and was first supported by early binance insiders like co-founder Yi He. The fund has already accepted around $300 million from external sources in 2022.
“There’s always been a lot of interest from outside investors,” YZI Labs head Ella Zhang told the Financial Times. “We are considering turning it into an external fund in the future, but we believe it’s not the right time at this stage.”
YZI Labs’ portfolio includes major projects across Crypto and Web3 spaces, including Aptos Labs, Polygon, 1inch Network, and Sky Mavis, as well as infrastructure and security players such as Layerzero, Mysten Labs, and Certik. According to Dealroom, the fund’s holdings cover over 230 companies, highlighting its wide reach within the blockchain industry.
Related: Standard Chartered Venture Arm Plan is a $250 million fund for digital assets
SEC Requests Confidential Demos from YZI Labs Portfolio Company
Ella Zhang also revealed that the U.S. Securities and Exchange Commission (SEC) recently requested a personal demonstration of YZI Labs-backed companies. The SEC investigation shows a relatively friendly stance from US regulators regarding crypto under the Biden administration following the absence of chairs at the company’s demonstration day on the New York Stock Exchange.
“Committee Paul Atkins and others are very open-minded,” Zhang pointed out. Atkins has been SEC Chair since April 2025. This development marks a shift towards more constructive engagement between regulators and innovative blockchain companies.
Meanwhile, Zhao resigned from Binance last year after pleading guilty to US criminal charges related to AML compliance. He has been sentenced to four months in prison and is currently seeking pardon from President Donald Trump. Despite this, Zhao remains Binance’s biggest shareholder and continues to influence the industry.
Crypto market participants closely monitor regulatory developments as the industry matures, with increasing interest from institutional investors in blockchain, DEFI and NFT ventures. The YZI Labs move shows a significant evolution in the institutionalization of crypto funds by considering the invitation of external capital.
Recent trends in Crypto Venture Funding
This shift comes amid growing demand for encryption and native investment funds. In particular, Galaxy Digital raised $175 million in its first externally managed venture fund in June, surpassing its initial $150 million target. Such developments underline the increased confidence in potential returns from early blockchain startups. Some analysts believe they can offer more benefits than traditional assets.
As the crypto industry expands, clarity of regulations and institutional participation will continue to shape the future of blockchain innovation and investment.