YZi Labs Invests Eight Figures in Genius Trading with CZ as Advisor

Summary:
YZi Labs, an investment firm founded by Changpeng Zhao, has made an eight-figure investment in the on-chain trading terminal Genius Trading. This move reflects a growing confidence in cross-chain execution infrastructure amid the ongoing evolution of the cryptocurrency markets. In addition to investing, Zhao has taken on the role of advisor for Genius Trading.

Key Takeaways

YZi Labs made an eight-figure investment in Genius Trading, emphasizing cross-chain execution infrastructure.
Zhao will join Genius Trading as an advisor.
The rise of decentralized trading is leading to new challenges in execution, liquidity, and information security.
Genius Trading processes trades across multiple blockchains and has already managed over $160 million in volume.
YZi Labs is focusing on foundational infrastructure and supports emerging technologies in Web3 and AI.

YZi Labs Invests Eight Figures in Genius Trading with CZ as Advisor

The Shift Towards On-Chain Trading

As trading activities become more diversified across blockchains, the focus is shifting from centralized exchanges to decentralized platforms. This transition presents various challenges, particularly for larger traders, including issues related to execution, liquidity, and information security.

YZi Labs’ investment in Genius Trading illustrates an increased interest in developing infrastructure that prioritizes efficient trade execution rather than merely increasing liquidity options. Genius Trading is a newly launched on-chain trading terminal that aggregates spot, perpetual, and copy trading across a variety of blockchains.

Since its launch, Genius Trading has reportedly handled over $160 million in trading volume across ten blockchains, including well-known networks like Ethereum, Solana, and BNB Chain.

Understanding the Role of YZi Labs

YZi Labs manages an impressive portfolio of around $10 billion in assets. Initially part of Binance’s venture arm, it now operates as Zhao's family office. The firm concentrates on venture-stage investments in Web3, artificial intelligence (AI), and biotechnology, with a recent shift to prioritizing foundational infrastructure projects over consumer applications.

The announcement of the investment underscores Genius Trading's strategic alignment with YZi Labs' focus, especially as trading volume continues to shift from centralized to decentralized exchanges. Recent data indicates that decentralized exchanges rose from just 6% of spot trading volume at the start of 2021 to 21.2% by late 2025, peaking at 37.4% during a surge of on-chain activity.

Decentralized Trading Growth

Addressing Privacy Challenges in On-Chain Trading

YZi Labs points out that this shift to decentralized trading introduces what it calls a “transparency bug.” Trades conducted on public blockchains are inherently visible, which can alert markets to large orders before they are executed, impacting prices adversely.

To tackle this problem, Genius Trading aims to enhance execution quality and maintain trader privacy. The platform employs a “Ghost Order” system that allows for the execution of complex strategies across multiple wallets while keeping them discreet. This non-custodial, auditable process ensures that users maintain control over their private keys while obscuring their trading activities from the wider market.

Armaan Kalsi, co-founder and CEO of Genius Trading, emphasizes that their collaboration with YZi Labs is about creating alignment beyond mere financial investment. The goal is to develop an on-chain trading platform that offers the efficiency and privacy that users typically associate with centralized exchanges.

The fresh funding will focus on advancing the platform's privacy features ahead of a wider rollout planned for late 2026. Furthermore, this investment aligns with YZi Labs' broader commitment to supporting foundational infrastructure in the blockchain ecosystem, having backed over 300 companies and recently launching a $1 billion fund to nurture builders on the BNB Chain through its mentorship and support programs.