TL;DR
- Family Office Shift: YZi Labs, founded by CZ, may convert into an external-facing investment fund, moving beyond its family office structure.
- Sector Expansion: The firm is building expertise in AI and biotech while maintaining strength in Web3 investments.
- Post-Prison Focus: After serving a sentence and stepping down as Binance CEO, CZ has concentrated on YZi Labs’ growth and strategy.
YZi Labs, the $10 billion family office created by Binance co-founder Changpeng “CZ” Zhao, is weighing a shift that could open its doors to outside investors, according to a report from the Financial Times. The move would mark a significant evolution for the firm, which was rebranded from Binance Labs and currently manages the wealth of Zhao and fellow Binance co-founder Yi He.
From Family Office to Investment Fund
Ella Zhang, head of YZi Labs, said the company is considering converting into an investment fund. She noted that there has always been a strong interest from external investors and that the firm may eventually transition into an external-facing vehicle. Such a change would represent a departure from the traditional family office model, which is designed to manage the assets of a single family without raising outside capital.
Strategic Focus and Emerging Fields
While YZi Labs has deep experience in Web3 investments, Zhang acknowledged that the firm is still in the early stages of building expertise in artificial intelligence and biotechnology. She explained that the company is actively forming teams in these areas and will be more open to external participation once the necessary talent and knowledge are in place. This signals a broader ambition to diversify beyond blockchain into other high-growth sectors.
CZ’s Shift After Prison Sentence
The rebranding of YZi Labs followed Zhao’s release from prison, where he served a four-month sentence for failing to implement adequate know-your-customer procedures at Binance. As part of his guilty plea, Zhao stepped down as CEO of Binance and redirected his focus toward YZi Labs. The firm has since become the primary vehicle for managing his wealth and that of Yi He, underscoring its central role in Zhao’s post-Binance career.
Industry Implications
If YZi Labs transitions into an investment fund, it could reshape perceptions of family offices in the digital asset space. Opening to external investors would not only expand its capital base but also position the firm as a more influential player across multiple industries. However, the company has not yet confirmed a timeline, and YZi Labs declined to comment.
