Key Takeaways
- • Changpeng "CZ" Zhao expects YZi Labs' crypto winter investments to become the fund's best-performing assets, citing favorable entry timing as crypto prices approached multi-year lows in early 2026.
- • YZi Labs, the $10 billion family office managing Zhao and Binance co-founder Yi He's personal wealth, deployed capital across robotics, AI payments, digital asset custody, and prediction markets during the market downturn.
- • The firm's largest disclosed 2026 investment was a $52 million lead round in RoboForce (March), a physical AI systems developer, alongside smaller positions in BitGo (pre-IPO), Predict.fun, AEON payments protocol ($8 million pre-seed in May), and TermMax fixed-rate lender (August).
- • YZi Labs, evolved from Binance Labs' venture arm, is rebranded to reflect expanded focus on Web3, AI, and biotech synergies, with Ella Zhang leading growth initiatives and CZ providing mentorship to portfolio startups.
- • Zhao argued that artificial intelligence capital flows are rotating back into digital assets, positioning crypto winter entries as strategically timed bets ahead of anticipated market recovery and AI-crypto convergence.
Summary
Changpeng Zhao has publicly stated that YZi Labs' cryptocurrency investments made during the 2026 crypto winter downturn are positioned to become the firm's strongest performers. Zhao's optimism centers on market timing: YZi Labs deployed capital while Bitcoin had fallen approximately 47% from its peak by early June 2026, creating what market participants characterized as a severe crypto winter environment. Though prices have since recovered modestly, they remain substantially below October 2025 highs, suggesting significant upside potential for assets acquired at depressed valuations.
YZi Labs operates as a $10 billion family office managing personal wealth for Zhao and Binance co-founder Yi He, having evolved from Binance Labs, the exchange's former venture capital arm. The fund now invests independently across an expanded mandate spanning Web3, artificial intelligence, robotics, biotech, and fintech. Zhao's confidence in the timing reflects his broader thesis that money flowing into AI infrastructure will eventually rotate back into digital assets, with crypto serving as "the native currency for AI agents."
The firm's 2026 deployment demonstrates sector diversification aligned with this thesis. YZi Labs led a $52 million Series round in RoboForce in March 2026, focusing on physical AI systems development—its largest disclosed check. The fund also acquired a stake in digital asset custodian BitGo ahead of the company's January NYSE listing. Additional 2026 positions include an April investment alongside Susquehanna Crypto in prediction market Predict.fun, an $8 million pre-seed round in AEON (a payments protocol) in May, and backing for TermMax, a fixed-rate lender, in August.
Notably, Zhao has not published quantitative returns data supporting the outperformance thesis, leaving the claim untested. Additionally, YZi Labs spent considerable effort in 2026 pursuing control of BNB treasury firm CEA Industries, a separate strategic initiative. The firm has also faced external scrutiny regarding potential expansion to outside investors, with Zhao publicly rebuking a Financial Times report suggesting YZi Labs was considering conversion into an externally focused fund, though the company acknowledged receiving significant investor interest.
YZi Labs operates as a $10 billion family office managing personal wealth for Zhao and Binance co-founder Yi He, having evolved from Binance Labs, the exchange's former venture capital arm. The fund now invests independently across an expanded mandate spanning Web3, artificial intelligence, robotics, biotech, and fintech. Zhao's confidence in the timing reflects his broader thesis that money flowing into AI infrastructure will eventually rotate back into digital assets, with crypto serving as "the native currency for AI agents."
The firm's 2026 deployment demonstrates sector diversification aligned with this thesis. YZi Labs led a $52 million Series round in RoboForce in March 2026, focusing on physical AI systems development—its largest disclosed check. The fund also acquired a stake in digital asset custodian BitGo ahead of the company's January NYSE listing. Additional 2026 positions include an April investment alongside Susquehanna Crypto in prediction market Predict.fun, an $8 million pre-seed round in AEON (a payments protocol) in May, and backing for TermMax, a fixed-rate lender, in August.
Notably, Zhao has not published quantitative returns data supporting the outperformance thesis, leaving the claim untested. Additionally, YZi Labs spent considerable effort in 2026 pursuing control of BNB treasury firm CEA Industries, a separate strategic initiative. The firm has also faced external scrutiny regarding potential expansion to outside investors, with Zhao publicly rebuking a Financial Times report suggesting YZi Labs was considering conversion into an externally focused fund, though the company acknowledged receiving significant investor interest.
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