CZ’s YZi Labs Plans to Open Its Fund to External Investors
Key Highlights:
- YZi Labs may open doors for external investors and evolve into a formal external fund.
- SEC Chair Paul Atkins requested a private demo after missing YZi Labs’ NYSE event.
- Portfolio remains 70% digital assets but expanding to AI, robotics and biotechnology.
Binance founder Changpeng “CZ” Zhao’s $10 billion investment platform, YZi Labs, could soon take on a bigger role in global finance. According to the Financial Times (FT), the firm is considering allowing outside investors to participate and is thinking of eventually turning it into a full scale external fund. This move indicates that there is a rising interest in YZi’s investments and CZ’s plans to grow beyond his own capital.
A Growing Demand for Access
Ella Zhang, head of YZi Labs, has already made it public that outside interest had been strong since the firm was launched. She explained that the level of inquiries have been very high and that in time the firm will give outside investors a shot, while noting it is still building its institutional setup.
As of now, YZi Labs runs as a closely managed platform for CZ’s investment plans, but the demand from wider investors show confidence in its focus on digital assets and new technologies. The firm has also managed to gain significant attention in the industry. Over the summer, more than 50 project teams have approached the firm with proposals for funding or partnerships. These proposals indicate that YZi Labs is trusted for backing of early blockchain projects.
SEC Chair Takes Private Look
YZi Labs recently held a Demo Day at the New York Stock Exchange to showcase their new startups and blockchain projects. SEC Chairman Paul Atkins could not attend the event but he then asked for a private demonstration to see what the firm was building.
The SEC asking for a private demo is huge because it shows that the U.S. regulators want to understand the projects YZi Labs supports. This interest also indicates that the firm is being recognized by major financial authorities and it provides a sense of credibility to the firm. This attention from the SEC can also bring in big institutional investors, and open doors for larger capitals for YZi Labs.
Portfolio Shifts
As of now digital assets are making up about 70% of YZi Labs’ $10 billion portfolio. The firm has focused on buying blockchain tokens, acting like an early-stage venture firm but with much more capital and direct market exposure. Recently, CZ and Zhang are also diversifying and investing in fields of AI and robotics.
With such activities, YZi Labs sets itself apart from the other crypto investment funds such as Andreessen Horowitz (a16z), Paradigm or Pantera Capital which focuses only on DeFi, NFT and Layer-1 protocols. YZi Lab is not only focusing on blockchain and DeFi but it is also focusing on AI, robotics and biotech, which means that the firm is supporting projects that will have a huge impact moving forward with guidance from CZ and experienced leaders.
The firm has backed AI and biotech projects such as Sahara AI, MyShell and BIO Protocol, which work on advanced AI applications and innovative biotech solutions.
Looking Ahead : A New Type of Fund?
If YZi Labs becomes an external fund, as mentioned above, it could easily attract big investors like pension funds and traditional asset managers who want access to crypto and new technologies. Its Demo Day at the NYSE and talks with regulatory authorities indicate that the firm is pretty sure on becoming a bridge between blockchain projects and mainstream finance.
While the investment firm is still experimenting, strong interest from the investors, regulatory attention and CZ’s vision indicate that the firm could become a major hybrid fund in the coming decade.
Also Read: SlowMist’s CISO Warns of WebAuthn Key Login Vulnerability
