Binance Labs has been spun off as an independent entity outside of Binance Group.
Binance spun off its $10 billion venture capital arm, Binance Labs, into an independent company that is no longer part of the group’s purview a few months ago.
Bloomberg noted the quiet changes in a March 15 report that revealed that Binance Labs had added a disclaimer about the changes to its website earlier this year.
Based on a snapshot from Archive.org, the venture added the disclaimer in late February.
“Binance Labs is an independent venture that is not part of the Binance Group and is not involved in any business operated by the Binance Group (including but not limited to the Binance cryptocurrency exchange).”
The spinoff is one of the most important decisions the exchange’s new CEO, Richard Teng, has made since taking over four months ago. He previously led the exchange’s Singapore operations and has no publicly listed role at Binance Labs.
The companies did not respond to requests for comment at press time, and the reasons for the decision to spin off their venture capital arm are unclear.
brand license
Binance Labs investment director Alex Odagiu told Bloomberg that the venture capital firm will operate independently but will continue to use the Binance brand name under a licensing agreement.
Despite its new independence, Binance Labs remains committed to its fundamental mission: discovering and investing in promising cryptocurrency projects. Odagiu reaffirmed the commitment, emphasizing that the venture’s focus on supporting innovation within the blockchain ecosystem remains unchanged.
The separation entails separate contractual agreements for Binance Labs employees, mirroring the organizational structure seen in other Binance-supported entities such as BNB Chain.
Bloomberg has confirmed that Binance Labs is valued at close to $10 billion. The company’s website says it has supported more than 200 cryptocurrency projects over six years. The portfolio includes, among others, top 20 market capitalization blockchain Polygon, metaverse-centric platform The Sandbox, and decentralized finance platform CurveFi.
Binance’s Leadership Reorganization
This strategic shift follows Binance’s recent settlement with U.S. regulators, which resulted in a hefty fine of $4.3 billion and the replacement of founder Changpeng Zhao as CEO.
The reorganization appears to be part of a broader strategy to navigate the post-settlement environment and ensure regulatory compliance and operational resilience.
Under the leadership of Binance co-founder Yi He, Binance Labs has emerged as a pivotal force in the cryptocurrency venture capital space.
Funded primarily through exchange revenues, the company has established itself as a key player, supporting around 250 projects, including well-known names such as Sky Mavis, Aptos Labs, and Polygon.
The venture operates as an investor and incubator with a focus on nurturing startups across various blockchain ecosystems.