YZi Labs Considers Opening to External Investors

YZi Labs, managed by Binance co-founder Changpeng Zhao, is reportedly exploring external investments after initial funding from Zhao and early Binance executives, according to Financial Times on September 23rd.

This move signals significant developments in cryptocurrency and biotech sectors, potentially impacting markets and investment strategies especially with YZi Labs’ notable $10 billion asset management.

YZi Labs’ $10 Billion Investment Strategy Shift

YZi Labs, managed by Binance co-founder Changpeng Zhao, could soon open to external investors. The firm, with a focus on cryptocurrency, AI, and biotech investments, is weighing this strategic approach, currently powered by internal funding from Zhao and early Binance executives.

The firm’s head, Ella Zhang, indicated that once sufficient experiences are obtained in AI and biotech, the firm may transition to an external fund. Previously raising $300 million through outside investment, YZi Labs considers expanding this strategy further.

While YZi Labs mulls over embracing external capital, industry chatter has surged. Notable figures, including Dana Hou of YZi Labs, praised Ethena’s performance and impact in defining recent synthetic dollar markets, underscoring the firm’s growing influence. Hou stated, “Since our investment team first met Guy Young in late 2023, Ethena has become the category definer for yield-bearing synthetic dollars.”

Ethena USDe Surges with $14 Billion Market Cap

Did you know? YZi Labs’ move towards external investments could set a new historic standard for major crypto-native VC firms. Such a shift would potentially redefine venture capital landscapes akin to establishing GS-style funds.

Ethena USDe, priced at $1.00, boasts a market cap of $14 billion according to CoinMarketCap. The stablecoin experienced a 24-hour volume spike of 308%, suggesting increased trading activity. Circulating supply stands at 14 billion.

Coincu’s research team points out potential regulatory challenges as YZi Labs moves towards outside funding. Historical trends show major funding shifts lead to intensified scrutiny. Balancing innovation with regulation remains key as the firm expands.