EZ Labs Invests Tens of Millions in Revolutionary DEX Advised by Changpeng Zhao

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EZ Labs Invests Tens of Millions in Revolutionary DEX Advised by Changpeng Zhao

In a significant move for decentralized finance, EZ Labs—the venture capital arm formerly known as Binance Labs—has committed tens of millions of dollars to Genius Trading, a company developing a privacy-focused decentralized exchange advised by Binance founder Changpeng Zhao. This strategic investment, first reported by The Block in early 2025, signals a major push toward creating what developers describe as “an on-chain version of Binance,” potentially reshaping how traders interact with digital assets globally.

EZ Labs Investment Targets Next-Generation Trading Infrastructure

The investment from EZ Labs represents one of the most substantial venture capital injections into decentralized exchange infrastructure this year. Furthermore, Genius Trading aims to build a comprehensive self-custodial cross-chain terminal. This platform will offer spot trading, perpetual futures contracts, and copy trading functionalities. Consequently, the investment underscores a growing institutional belief in decentralized trading solutions that prioritize user sovereignty and privacy.

Industry analysts immediately noted the strategic significance of this funding round. “This isn’t just another DEX investment,” observed Maria Chen, a senior blockchain analyst at Digital Asset Research. “The combination of EZ Labs’ capital, the technical vision for an on-chain Binance equivalent, and Changpeng Zhao’s advisory role creates a unique convergence of resources and expertise in the DeFi space.” The specific allocation of the multimillion-dollar investment remains confidential, but company statements suggest it will accelerate core protocol development and security audits.

The Evolution from Binance Labs to EZ Labs

This investment marks a notable chapter for the investor itself. EZ Labs originated as Binance Labs, the venture capital and incubation arm of the world’s largest centralized cryptocurrency exchange. The rebranding to EZ Labs occurred as part of a broader organizational restructuring following Binance’s 2023 settlement with U.S. regulatory authorities. Despite the name change, the entity maintains its mandate to fund and support promising blockchain and Web3 projects.

The firm’s portfolio includes over 200 projects across various blockchain verticals. Its continued investment in trading infrastructure, especially in a project connected to Binance’s founder, highlights a persistent focus on innovation within digital asset markets. The move also demonstrates how venture capital in crypto is increasingly flowing toward projects that enhance decentralization and user control, even when they originate from ecosystems historically centered on centralized services.

Changpeng Zhao’s Advisory Role and Its Implications

Changpeng Zhao’s involvement as an advisor to Genius Trading adds a compelling layer to the story. After stepping down as CEO of Binance, Zhao has maintained a lower public profile while fulfilling his legal obligations. His advisory role here suggests a continued, albeit indirect, engagement with the evolution of trading technology. It is crucial to note that an advisory position is distinct from an executive or ownership role; advisors typically provide strategic guidance without direct operational control.

Legal experts clarify that such advisory work typically falls within the bounds of post-settlement agreements, which often restrict executive roles but may permit advisory activities. Zhao’s experience in scaling Binance from a startup to a global behemoth provides invaluable, experience-driven insights for a team building a decentralized alternative. His involvement likely lends significant credibility to the Genius Trading project within investment circles.

Genius Trading’s Vision: A Privacy-Focused On-Chain Binance

The core product under development, a privacy-focused decentralized trading platform, aims to address several perceived gaps in the current market. Most existing decentralized exchanges (DEXs) offer spot trading but lack integrated perpetual futures or sophisticated social trading features. Conversely, centralized exchanges offer these features but require users to relinquish custody of their assets. Genius Trading seeks to merge these worlds.

Key planned features of the platform include:

• Self-Custodial Cross-Chain Terminal: Users retain control of their private keys while accessing markets across multiple blockchains.
• Integrated Perpetual Futures: Decentralized trading with leverage, a complex feat requiring robust oracle and liquidation systems.
• Copy Trading Infrastructure: Allows less experienced users to mimic the trades of vetted, successful strategies on-chain.
• Privacy-Centric Design: Aims to minimize the public traceability of trading strategies and wallet balances, a concern for many institutional and retail traders.

The technical roadmap suggests the team is tackling some of the most challenging problems in DeFi. Delivering a secure, cross-chain perpetual futures platform, for instance, requires solving issues around price feeds, collateral management, and liquidation mechanics in a trust-minimized way—all while preserving user privacy.

The Competitive Landscape for Advanced DEXs

Genius Trading will not enter a vacuum. The decentralized exchange landscape has matured rapidly. Established players like Uniswap dominate spot trading, while protocols like dYdX have pioneered decentralized perpetual futures. However, the market lacks a unified, cross-chain terminal that seamlessly combines all these services with a strong privacy focus.

The table below outlines how Genius Trading’s proposed features compare to existing solutions:

This differentiation is strategic. By bundling these features, Genius Trading targets a user base seeking a one-stop, non-custodial shop for advanced trading—a segment currently forced to use multiple platforms or revert to centralized exchanges.

Regulatory and Market Impact of the Investment

The EZ Labs investment arrives during a period of intense regulatory scrutiny for both centralized and decentralized crypto platforms. Global regulators are increasingly focusing on DeFi protocols, particularly those offering leveraged products. A privacy-focused platform will likely face additional questions regarding compliance with Travel Rule and Anti-Money Laundering standards, which often rely on transaction transparency.

Market impact, however, could be substantial. A successful, user-friendly platform that delivers a complete suite of trading tools on-chain could accelerate the migration of volume from centralized to decentralized venues. This shift aligns with the broader crypto ethos of decentralization but presents new challenges for user experience, security, and regulatory dialogue. The involvement of a major venture player like EZ Labs provides the project with resources to navigate this complex environment thoughtfully.

Ultimately, the success of Genius Trading will depend on execution. The venture must deliver robust, audited smart contracts, a seamless cross-chain experience, and a privacy model that satisfies users without inviting untenable regulatory risk. The tens of millions in funding provides a long runway to solve these problems.

Conclusion

The EZ Labs investment in Genius Trading represents a pivotal bet on the future of decentralized trading infrastructure. By backing a project advised by Changpeng Zhao that aims to create a privacy-focused, on-chain equivalent of Binance, EZ Labs is supporting an ambitious vision to consolidate advanced trading tools within a self-custodial framework. This move highlights the continued evolution of venture capital in crypto toward projects that empower users while tackling complex technical and regulatory frontiers. The development of this platform will be a key narrative to watch in the decentralized finance sector throughout 2025 and beyond.

FAQs

Q1: What is EZ Labs and how is it related to Binance?
A1: EZ Labs is the venture capital and incubation arm formerly known as Binance Labs. It was rebranded following Binance’s 2023 organizational restructuring but continues to invest in early-stage blockchain and Web3 projects, operating independently from the Binance exchange.

Q2: What exactly is Genius Trading building with this investment?
A2: Genius Trading is developing a privacy-focused decentralized trading platform. It aims to function as a self-custodial, cross-chain terminal offering spot trading, perpetual futures contracts, and copy trading features—essentially an on-chain version of a major centralized exchange.

Q3: What does Changpeng Zhao’s role as “advisor” entail?
A3: An advisory role typically involves providing strategic guidance, industry insights, and networking support to a company’s leadership team. It is a non-executive position, meaning Zhao would not have day-to-day operational control or decision-making authority at Genius Trading.

Q4: Why is a privacy focus significant for a decentralized exchange?
A4: Privacy is significant because fully transparent blockchains allow anyone to view trading strategies, wallet balances, and transaction histories. A privacy-focused DEX aims to protect users from front-running, strategic copying, and unwanted financial surveillance, which is a concern for both retail and institutional traders.

Q5: How does this investment affect the broader DeFi competitive landscape?
A5: This investment signals venture capital confidence in next-generation DEXs that offer a full suite of trading products. It raises the competitive bar, pushing existing projects to innovate further and potentially accelerating the integration of advanced features like cross-chain perpetual futures and social trading into decentralized platforms.

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