Binance founder Changpeng "CZ" Zhao believes that YZi Labs' recent investments made during the crypto market downturn could become some of the firm's best performers over time. The investment strategy reflects a broader institutional shift toward backing infrastructure, robotics, and artificial intelligence projects rather than focusing solely on token speculation.

YZi Labs, which manages more than $10 billion in assets and operates independently from Binance, has deployed capital across Web3, artificial intelligence, and biotechnology ventures during a period when crypto valuations faced significant pressure in the first half of 2026. The firm emerged from the rebranding of Binance Labs and is managed by capital associated with Zhao and Binance co-founder Yi He.

"I strongly believe the YZi Labs investments over the last few months will be some of the best performing because those investments were done during the depth of the crypto winter," Zhao wrote.

Changpeng Zhao, Binance Founder

Zhao's statement reflects a classic investment principle: deploying capital when asset prices are depressed can yield stronger returns if selected companies survive the downturn and grow. However, this outcome is not guaranteed for every investment made near a market low.

What Types of Projects Is YZi Labs Backing Now?

YZi Labs has expanded well beyond traditional cryptocurrency investments. While Zhao previously stated that Web3 still represents roughly 70 to 80 percent of the portfolio, the firm has significantly increased exposure to technologies connecting blockchain systems with artificial intelligence, robotics, and institutional finance.

Recent publicly verified investments during 2026 include:

• RoboForce: A robotics company that secured $52 million in March, with YZi Labs leading the round. The company develops physical artificial intelligence systems for industrial work in solar power, data centers, manufacturing, mining, and logistics.
• BitGo: A digital asset custodian that YZi Labs invested in around its January listing on the New York Stock Exchange, providing exposure to regulated U.S. financial infrastructure.
• Predict.fun: A self-custodial prediction market on BNB Chain that received follow-on funding from YZi Labs alongside Susquehanna Crypto in April, after processing more than $1.8 billion in cumulative trading volume.
• AEON: An artificial intelligence payments protocol that raised $8 million in a pre-seed round led by YZi Labs in May, designed to let autonomous software agents execute and settle transactions.
• TermMax: A fixed-rate lending protocol that received a strategic investment from YZi Labs in August after joining the EASY Residency incubation program.

The RoboForce investment exemplifies YZi Labs' infrastructure-first approach. Rather than betting on token appreciation, the firm backed a company building physical systems for labor-intensive industrial tasks. RoboForce claimed letters of intent covering more than 11,000 robots, though this represents prospective demand rather than completed deliveries or recognized revenue.

How Does Market Timing Shape Institutional Crypto Strategy?

YZi Labs' investment timing strategy connects to broader market conditions. Bitcoin traded near $79,945 on September 6, 2026, having recovered from lower levels recorded earlier in the year but remaining below its previous record. This recovery alone does not establish whether YZi Labs' private investments have appreciated in value.

The firm's approach differs from traditional venture capital in one key way: most deal terms, valuations, and individual investment amounts remain undisclosed. Neither Zhao nor YZi Labs has published acquisition prices, current valuations, or investment returns supporting the prediction that these deals will outperform. This lack of transparency makes independent verification of performance claims impossible.

YZi Labs' investment in BitGo during its public listing offered a clearer route to price discovery than its privately held investments. Publicly traded shares can be valued continuously through market prices, while private holdings depend on financing rounds, secondary sales, or company disclosures. This distinction matters for institutional investors tracking portfolio performance.

Why Does This Matter for Institutional Crypto Adoption?

YZi Labs' portfolio strategy signals how major crypto stakeholders are positioning themselves as institutional capital enters digital assets. By backing custody infrastructure like BitGo, prediction markets, artificial intelligence payment systems, and industrial robotics, the firm is betting that the next wave of crypto growth will be driven by practical applications and regulated financial infrastructure rather than speculative token trading.

The firm's expansion into robotics and artificial intelligence also reflects Zhao's stated preference for investing in infrastructure that supports artificial intelligence rather than competing directly with heavily funded artificial intelligence model developers. This approach was reflected in the firm's robotics and autonomous-payment investments.

Whether YZi Labs' private investments become leading performers will ultimately depend on whether companies like RoboForce convert prospective orders into commercial deployments, whether Predict.fun sustains its trading volume growth, and whether AEON's autonomous payment infrastructure gains adoption. No independently audited revenue or return figures have accompanied these funding announcements, leaving the long-term success of the strategy uncertain.