Binance’s founder, Changpeng Zhao (CZ), is setting up a family office to manage his massive fortune. This isn’t just any family office; it’s a big deal.
From Binance to YZi Labs: A New Chapter
After navigating some serious legal trouble (including a brief jail stint!), CZ is rebranding Binance’s old venture capital arm into YZi Labs. This new entity will handle roughly $10 billion in crypto assets, marking a significant shift in his investment strategy. The name itself is a clever nod to both CZ and Binance co-founder Yi He, who will also use YZi Labs for their wealth management. Ella Zhang, a key figure in Binance Labs’ early days, is back to lead the charge. She’s made it clear: YZi Labs is purely a family office.
A Rocky Road to Riches (and a New Focus)
CZ’s journey to becoming a crypto billionaire wasn’t exactly smooth sailing. Binance’s unconventional structure and lack of a traditional headquarters drew the attention of regulators, especially in the US. This led to legal challenges, fines, and even that short prison sentence. But after his release, CZ announced a renewed focus on investments that benefit society, not just his bottom line.
Expanding Horizons: Beyond Crypto
YZi Labs represents a strategic move. CZ can stay involved in crypto while branching out into other exciting areas like artificial intelligence and biotechnology. They’re even hiring experts in these fields. This is a big change from Binance Labs, which primarily focused on crypto projects (like Sky Mavis, Aptos Labs, and Polygon). YZi Labs will invest amounts ranging from $500,000 to $50 million, offering a flexible approach. With high demand for investments in this space, YZi Labs is well-positioned for success.
A Power Player Emerges
CZ’s active role in YZi Labs’ investment committee will likely attract many founders and entrepreneurs seeking funding and guidance. The rebranding and strategic shift not only solidify CZ’s position in the crypto world but also position YZi Labs as a major player, potentially competing with giants like a16z crypto and Polychain Capital. Currently, Binance Coin (BNB) is trading around $682.
