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Let us discuss the launch and growth of CZ's baby project - YZI Labs, how it relates to Binance and why it is so popular in 2025.
Author: Sahil Thakur
YZi Labs, then Binance Labs started in early 2018 as the venture arm of Binance. It was co-founded by Binance CEO Changpeng “CZ” Zhao and Yi He. Under its first head, Ella Zhang, Binance Labs launched incubation cohorts and invested in around 40 to 50 projects. These included future leaders like Polygon (Matic), CertiK, and Injective Protocol. Successes such as Polygon, at one time a top-10 blockchain, quickly built Binance Labs’ reputation in the crypto community.
In January 2025, Binance Labs rebranded as YZi Labs. This marked its shift into an independent entity. The change was not just a new name. It reflected a strategic move from an internal Binance division to a family-office-style venture firm run by CZ and Yi He. In the January 23, 2025 announcement, YZi Labs stated its plans to expand beyond Web3. It aimed to explore emerging fields like artificial intelligence (AI) and biotechnology.
Ella Zhang, who had led Binance Labs in its early years, returned to lead YZi Labs. This brought consistency in leadership and mission. She clarified that although the name had changed, the mission remained the same: to support transformative technology. Now, the vision was broader. The new goal was to bridge Web3 with AI and biotech and push the boundaries of innovation.
YZi Labs also reintroduced the spirit of the original incubator. It launched a new in-person residency program lasting around 12 weeks. This program aimed to support and develop new founders. The transition was smooth for existing portfolio startups. They continued to receive backing during the shift.
YZi Labs operates independently but remains closely connected to Binance’s ecosystem. It manages a $10 billion venture fund focused on Web3, artificial intelligence, and biotechnology. Although separate in structure, it still aligns with key projects in the Binance network, especially the BNB Chain.
The main backers of YZi Labs are Changpeng “CZ” Zhao and Yi He, the co-founders of Binance. They jointly initiated the lab’s transition to an independent venture. It now functions as CZ’s personal investment house. Many refer to it as his “family office.” It manages capital estimated at around $10 billion. CZ has emphasized that this is a private venture. It does not include any external investors or limited partners. This directly addresses and dismisses rumors about outside fundraising. Yi He also plays an active role in guiding the firm. Her involvement shows that YZi Labs reflects the founders’ personal resources and long-term vision.
Initially, YZi Labs was part of Binance. Today, it stands as a fully independent entity. This shift was intentional. After CZ stepped down from his leadership role at Binance, it separated from the Binance brand to follow a broader mission. It is not a subsidiary of Binance. In fact, CZ is legally barred from holding any executive position at Binance due to his regulatory settlement.
Even so, YZi Labs maintains a strong working relationship with Binance’s ecosystem. For instance, it continues to support projects on the BNB Chain. It also co-launched a $1 billion fund with BNB Chain to grow that network. Internally, YZi Labs is viewed as a venture platform powered by family-office capital. However, it does not focus on personal estate or tax planning. Instead, it devotes its energy to investment and incubation.
In practice, YZi Labs taps into Binance’s vast network. This includes the exchange’s 275 million users and related products like Trust Wallet and CoinMarketCap. At the same time, it makes investment decisions independently. This setup allows YZi to benefit from Binance’s reach while pursuing opportunities beyond the crypto-only space.
Changpeng Zhao has played a key role in both the creation and evolution of YZi Labs. He co-founded Binance Labs in 2018 and helped shape its vision. While others like Ella Zhang led the day-to-day work, CZ provided strategic direction. His goal at the time was to grow the crypto ecosystem. Since he was also running Binance Exchange, his involvement in Labs was limited to a founder-level role.
That changed in late 2023. CZ stepped down as Binance CEO following a U.S. regulatory settlement. He admitted to violations related to anti-money-laundering controls and agreed to pay $4.3 billion. He also served a short sentence that ended in 2024. After that, he shifted his focus to investing and education. He even launched a Web3 education project called “Giggle Academy.”
In January 2025, YZi Labs officially launched. This marked CZ’s return to active investing. No longer burdened with running an exchange, he took on a hands-on role at YZi Labs. He now acts as a mentor and strategic advisor to the startups in the lab’s portfolio. CZ has described the rebranding as a sign of expanded vision. He now explores AI and biotech, alongside blockchain.
Today, CZ is deeply engaged in YZi Labs’ operations. He coaches founders in the residency program. He also helps shape the firm’s investment strategy. This mentorship marks a new phase for him. Rather than managing a central exchange, he uses his industry experience to guide early-stage ventures. It is now the platform for his entrepreneurial energy.
Although CZ still holds the largest stake in Binance, he does not take part in its executive operations. YZi Labs gives him the freedom to stay active in the industry. In summary, CZ’s role has shifted. He went from being a founding figure at Binance Labs to becoming a deeply involved leader at YZi Labs. This change reflects his personal move from exchange founder to global tech investor.
Over the years, Binance Labs – and now YZi Labs – have backed a vast portfolio of blockchain projects. Many of these have grown into major players with successful token launches. The table below highlights a few of the notable projects and tokens associated with YZi Labs:
Beyond these, YZi Labs’ portfolio spans hundreds of projects across various niches. It was an early backer of infrastructure protocols like LayerZero (for cross-chain messaging) and has stakes in many Binance Smart Chain native projects (from stablecoin platforms like ListaDAO to developer tools). It is also isn’t limited to pure blockchain startups – it has branched into adjacent tech areas. For instance, in 2024–2025 it made its first AI-sector investment by funding Vana, a crypto-AI project focused on data ownership, which had just launched its token and mainnet . As part of that deal, CZ even joined as an advisor to Vana, underscoring YZi’s interest in the AI convergence. Similarly, YZi Labs ventured into real-world asset tokenization by backing Plume Network, a specialized blockchain for Real World Assets (RWA), marking YZi’s first foray into RWA-focused finance .
Many YZi-affiliated projects have rolled out tokens that garnered significant attention. The $VANA token jumped in value after YZi Labs announced its involvement (with news of CZ’s advisory role spurring a price rally) . Another example is Sign Protocol – a project building on-chain credential verification and token distribution tools – which received its’ first disclosed investment in early 2025. YZi Labs led a $16 million round into Sign, and the startup reported plans to launch a native SIGN token to power its ecosystem, leveraging YZi’s backing to accelerate growth . In short, it has become synonymous with incubating or funding many of the crypto industry’s headline projects, often shepherding them through token launches and into mainstream adoption.
YZi Labs frames its mission in visionary terms: “impact first” investing in technologies that can transform industries, with the belief that meaningful financial returns will follow naturally . At its core, it aims to back long-term, foundational innovation at the intersection of blockchain, AI, and biotech. The firm explicitly broadened its mandate so it can foster synergies between these fields – for example, funding AI startups that use blockchain for data integrity, or biotech initiatives that leverage decentralized science (DeSci) models . According to Ella Zhang, the evolution from Binance Labs to YZi Labs was driven by a philosophy of venturing into “new horizons” while “staying rooted in our Web3 foundations”, ultimately to create lasting value for society . This ethos of patient, utility-driven investment is reflected in YZi Labs’ strategy.
YZi Labs pursues its mission through several ongoing initiatives and programs:
Outside of these programs, YZi Labs continues to manage and grow its extensive portfolio of over 250 companies worldwide, ensuring they have the resources and guidance needed. The team places a strong emphasis on supporting founders for the long haul. Ella Zhang has spoken about “long-termism and empathy” as guiding principles – YZi Labs is willing to hold investments longer than a typical VC fund (since, as a private vehicle, it isn’t constrained by fixed fund cycles) and to help projects navigate challenges like user growth and talent acquisition, even using Binance’s ecosystem to boost them . In essence, YZi Labs’ mission is not only to invest money, but to serve as a strategic partner and incubator that nurtures technologies with potential to impact millions of lives across finance, science, and society.
As a high-profile venture tied to CZ, YZi Labs has faced its share of scrutiny. One notable controversy surfaced in September 2025. The Financial Times published an article suggesting that YZi Labs was seeking outside capital. It also claimed the firm might become open to third-party investors. The article even mentioned discussions with individuals like SEC official Paul Atkins. This implied a possible shift toward external fundraising.
CZ responded quickly and strongly. He publicly labeled the article as false. In a direct rebuttal, he clarified that YZi Labs is a private family office funded by his personal wealth. He stated that there was no demo, pitch deck, or roadmap prepared for external investors. Furthermore, he emphasized that the firm had not approached a single investor or regulator about fundraising since the rebrand. CZ also criticized the Financial Times for spreading misinformation and negative narratives. Interestingly, he admitted that he had not read the article himself due to its paywall. He was alerted by discussions in the community.
This episode highlighted a key tension. While CZ sees YZi Labs as a private and personal venture, outsiders remain curious. Many wonder whether the $10 billion fund will eventually tap broader capital markets.
Another recurring criticism targets the relationship between YZi Labs and Binance. Because of CZ’s regulatory history with Binance, many observers are watching YZi Labs closely. The firm’s rapid launch and large funding pool have raised questions. Some suggest it might not be truly independent, possibly functioning as “Binance by another name.”
YZi Labs asserts its independence. It has stated that it was never formally spun out of Binance. One reason for the rebrand, in fact, was to separate CZ’s personal ventures from Binance’s regulatory history. Still, doubts persist. CZ remains Binance’s largest shareholder. Also, YZi Labs’ work on BNB Chain projects often indirectly benefits Binance. This overlap contributes to skepticism.
For example, controversy arose around a YZi-backed project called Aster. DeFiLlama delisted Aster due to integrity concerns. The incident sparked debate about YZi’s due diligence process. Although there have been no direct scandals involving YZi Labs, CZ’s legal past keeps the firm under a microscope. His U.S. plea deal, which involved compliance failures but not fraud, continues to cast a shadow.
Ultimately, YZi Labs faces a perception challenge. It must convince the world that it is an innovative and independent venture, not a rebranded version of past problems.
By the end of 2025, YZi Labs has grown rapidly. It now stands as one of the largest venture players in the crypto space. Its portfolio includes more than 250 startups spread across over 25 countries. Over 65 of these startups emerged through Binance and YZi Labs’ incubation programs. These numbers highlight a strong pipeline of carefully developed ventures.
YZi Labs now manages more than $10 billion in assets, according to internal estimates. This puts it on par with the largest crypto-focused funds in the world. Its growth has come entirely from the founders’ own capital. CZ’s personal wealth, including his large BNB holdings, has played a key role. Notably, BNB’s price soared in 2025, further increasing the fund’s financial power.
The industry response has matched this growth. Public excitement around YZi Labs has remained high throughout the year. When the firm launched in early 2025, many saw it as CZ’s return to direct investing. That perception generated early buzz. YZi’s initiatives have only added to the enthusiasm.
For instance, the first cohort of the EASY Residency incubator attracted over 1,000 startup applications from around the world. Nearly half of the applicants focused on AI. Another third centered on Web3. These numbers show how attractive YZi Labs has become to founders. They value not just the funding but also the credibility and visibility that come with YZi’s backing.
YZi Labs’ influence extends into the market. Its investment in the Vana AI project caused the VANA token’s price to rise. Likewise, its $1 billion public commitment to BNB Chain builders helped spark new optimism across that ecosystem. In October 2025, BNB hit an all-time high above $1,300. It became the third-largest cryptocurrency by market capitalization. Although multiple factors drove that rally, YZi Labs’ support and CZ’s visible involvement added over $40 billion to BNB’s value during that month alone.
Media coverage has increasingly focused on Yzi as a leader at the crossroads of crypto and emerging tech. Analysts note that CZ’s pivot to YZi has shifted the spotlight. Instead of Binance dominating headlines, YZi’s investments now command attention. These include ventures in decentralized science and AI-powered applications.
Hype from the broader community also plays a role. A simple social media hint from CZ about entering a new sector can cause token prices to surge. This happened recently when a niche token soared after CZ made a speculative post.
YZi Labs has smartly positioned itself to ride multiple waves. These include the AI boom, the rise of real-world asset tokenization, and the broader crypto market recovery. At the same time, it continues to draw strength from Binance’s global ecosystem.
In short, 2025 has been a breakout year. The firm has grown significantly, diversified into fast-moving sectors, and captured the industry’s attention. Developers flock to its programs. Investors watch its moves closely. With CZ actively involved, YZi Labs now serves as a key bridge between crypto’s past and the tech-driven future. The real challenge ahead lies in sustaining this momentum while managing the high expectations that come with being one of the most influential innovation hubs in the space.
