Binance CZ-Linked YZi Labs Weighs Opening Doors to Investors, Eyes Public Fund Conversion
YZi Labs, the investment firm linked to is weighing a significant shift in its operations that could view it take on outside investors and eventually operate as a public fund.
The firm, which manages around $10 billion of Zhao’s personal fortune alongside capital from ahead Binance insiders, has until now functioned largely as a family office. Its focus has been on crypto ventures and Web3 infrastructure, with forays into emerging technologies.
Ella Zhang, who leads YZi Labs, confirmed in an interview with the that the company is considering broadening access to its portfolio.
She said there has been consistent interest from external investors and suggested that opening the doors to outside capital is a matter of “when, not if.” Still, she stressed that such a move would require the firm to develop deeper expertise in areas beyond digital assets, particularly in artificial intelligence and biotechnology.
This would not be YZi Labs’ first encounter with outside investment. In 2022, the firm accepted roughly $300 million from external backers before returning part of that capital, citing its already ample internal resources.
The decision shows its preference for independence and patient capital, free from the short-term demands of external stakeholders.
Regulatory Shifts Could Shape the Next Move
A transition to a public-facing fund would mark a departure from that approach, bringing with it new responsibilities.
Unlike family offices, which manage private wealth with little disclosure, public funds must meet stricter regulatory standards, deliver detailed investor reporting, and balance liquidity demands.
Regulatory conditions could play a decisive role in this pivot. According to Zhang, U.S. regulators have recently shown a more open stance toward investment vehicles in the crypto and tech space.
The has even requested a private review of YZi Labs’ portfolio companies. Such engagement signals that Washington may be more receptive to funds bridging digital assets with broader technology investments.
For now, the timeline remains uncertain. Zhang emphasized that the priority is building internal capacity to navigate sectors outside of Web3 before welcoming external investors.
YZI Labs Expands Investment in Ethena
Recently, , following the project’s surge past $14 billion in supply and a Q3 report showing $9.72 million in revenue, according to DeFiLlama.
The latest investment is expected to support the launch of Ethena’s new stablecoin, USDtb, designed to comply with the .
YZI Labs described the move as aligned with its focus on “scalable digital dollar infrastructures.” Ethena’s existing stablecoin, USDe, has already emerged as the quickest-growing in the market. With a market capitalization of $13 billion, it is currently the third-largest stablecoin and the quickest to reach the $10 billion milestone.
