Binance Co-Founder Changpeng Zhao Plans to Open $10 Billion Portfolio to Outside Investors Amid Expanding Crypto and AI Bets

Changpeng Zhao, the billionaire co-founder of crypto exchange Binance, is preparing to take a bold step that could reshape the global investment landscape. His private investment arm, YZi Labs, currently managing a staggering $10 billion portfolio, is considering opening up to outside investors for the first time. The potential move would mark a major turning point for Zhao, who stepped down from Binance in 2023 following a U.S. criminal case, but remains one of the most influential figures in the digital asset sector.

YZi Labs: From Private Wealth to Potential Global Fund

Founded in January as a spin-off from Binance, YZi Labs has quickly grown into one of the world’s largest crypto-focused investment firms. It manages the personal fortune of Zhao, widely known as “CZ,” along with the wealth of early Binance executives, including his partner and Binance co-founder Yi He.

The firm has already dabbled in outside funding, securing about $300 million in 2022 before later returning part of it. Today, YZi Labs invests across three main sectors:

• Cryptocurrency start-ups

• Artificial Intelligence (AI)

• Biotechnology

Ella Zhang, head of YZi Labs, explained that while there is strong demand from external investors, the firm wants to strengthen its expertise in AI and biotech before transitioning into a fully external-facing fund.

Regulatory Hurdles in the United States

Should YZi Labs accept U.S. investors, the decision would trigger increased regulatory scrutiny. This comes in the aftermath of Binance’s settlement with U.S. authorities in 2023, when Zhao pleaded guilty to failing to prevent money laundering. The exchange itself admitted to multiple violations, agreeing to pay over $4.3 billion in penalties.

Despite these challenges, the environment in Washington has shifted. Under President Donald Trump, regulators have shown signs of a more crypto-friendly approach. The U.S. Securities and Exchange Commission (SEC) even requested a private showcase of YZi Labs’ portfolio projects, after its chair missed a demo day at the New York Stock Exchange.

Zhao’s Wealth and Ongoing Influence

Although Zhao resigned from his leadership role at Binance and served a four-month prison term, his estimated fortune still exceeds $80 billion thanks to his majority stake in crypto exchange Binance. He remains its largest shareholder and an outspoken advocate, frequently promoting BNB, the exchange’s native blockchain token.

A look at Zhao’s profile:

Expanding Portfolio: From Crypto to Robotics

YZi Labs is aggressively investing in emerging technologies beyond digital assets. Recent deals include:

• Backing a $1 billion crypto treasury project led by former Bitmain executives.

• Leading a $500 million fundraising round to turn a Nasdaq-listed vape maker into a BNB treasury firm.

• Reviewing pitches from more than 50 teams eager to raise funds through token-based ventures.

Currently, around 70% of the firm’s portfolio is tied to digital assets, but interest in robotics and AI is rising. Zhao believes robotics will ultimately integrate with blockchain, enabling transactions through crypto wallets and reshaping global commerce.

Long-Term Strategy Over Quick Profits

Unlike traditional venture capital firms that chase rapid returns, YZi Labs emphasizes a “super long-term” investment approach. Deploying $10 billion effectively is no easy task, as Zhao himself admitted to Zhang, who now faces the challenge of identifying projects strong enough to meet the firm’s high standards.

“The demand is very high, and many external investors want to invest alongside us,” Zhang said, noting that the firm is selective in its exits and cautious about meeting investor expectations.

The Future of Zhao and YZi Labs

Although barred from managing Binance directly, Zhao continues to shape the future of crypto through his investment strategies. YZi Labs’ focus on combining blockchain, artificial intelligence, and robotics reflects a vision that extends far beyond traditional finance.

If the firm opens to outside investors, it would not only expand its global reach but also cement Zhao’s role as one of the most powerful players in the evolving digital economy.