Changpeng Zhao-backed YZi Labs has made a strategic investment in BitGo, coinciding with the custodian’s initial public offering on the New York Stock Exchange. BitGo, a leading crypto custody provider founded in 2013, safeguards roughly $82 billion in assets and offers wallet infrastructure, staking, and settlement services to over 5,100 institutional clients worldwide.
YZi Labs emphasized that the investment reflects confidence in the long-term necessity of US-regulated crypto infrastructure, which it sees as critical for institutional adoption of digital asset markets. Ella Zhang, head of YZi Labs, noted that BitGo’s decade-long hack-free record provides a technical and operational foundation that strengthens its competitive position as the sector matures.
BitGo priced its shares at $18 per share during the IPO, raising approximately $212.8 million and valuing the company at over $2 billion. Trading on the first day was volatile, with shares briefly climbing 36% to $24.50 before settling near the IPO price in after-hours trading.
The company recently received conditional approval for a US banking charter, allowing it to operate as a trust bank alongside firms like Circle and Ripple, further reinforcing its regulated infrastructure credentials. Other notable backers include Goldman Sachs, Galaxy Digital, Valour Equity Partners, Craft Ventures, DRW, and Redpoint Ventures, highlighting strong institutional interest in regulated crypto platforms.
YZi Labs Expands Strategic Portfolio
Previously known as Binance Labs, YZi Labs operates as the family office of Binance co-founders Changpeng Zhao and Yi He, investing across over 300 projects in more than 25 countries. The firm has diversified its portfolio to include emerging technologies such as artificial intelligence, having recently led a funding round for AI video education startup VideoTutor.
Its investment in BitGo underscores a broader strategic focus on digital asset infrastructure that is compliant with US regulations, positioning YZi Labs to capitalize on the growing demand from institutional capital moving onto regulated crypto rails. The backing also signals confidence in the resilience and scalability of custodial solutions as crypto markets mature and regulatory oversight expands.
