Binance spun off its $10 billion venture capital arm, Binance Labs, into an independent entity that will no longer report to the group a few months ago.
Bloomberg drew attention to the silent change of a March 15 report, which revealed that Binance Labs added a warning about the change to its website earlier in the year.
Based on snapshots from Archive.org, the venture capital firm added the disclaimer in late February:
“Binance Labs is an independent company and is not part of the Binance Group and is not involved in any businesses operated by the Binance Group (including but not limited to the Binance cryptocurrency exchange). “
The split is one of the most significant decisions made by the exchange's new CEO, Richard Teng, since taking office four months ago. He previously headed the exchange's Singapore division and does not hold any publicly traded roles at Binance Labs.
The companies did not respond to a request for comment at the time of publication, and the reasons for the decision to split the venture capital division are unclear.
Brand License
Binance Labs chief investment officer Alex Odagiu told Bloomberg that the venture capital firm operates independently but will continue to use the Binance brand under a licensing agreement.
Despite its newfound independence, Binance Labs remains dedicated to its core mission of discovering and investing in promising crypto projects. Odagiu reaffirmed its commitment, emphasizing that the company's focus on supporting innovation within the blockchain ecosystem remains unchanged.
The separation involves separate contractual arrangements for Binance Labs staff, mirroring the organizational structure seen in other Binance-backed entities such as the BNB Chain.
Bloomberg has identified the value of Binance Labs at nearly $10 billion. The company's website states that it has supported more than 200 crypto projects over six years. Its portfolio includes the Polygon blockchain, the twenty largest market capitalization, the metaverse-focused platform The Sandbox and the decentralized finance platform CurveFi.
Binance reshuffled management
This strategic shift follows Binance's recent settlement with US regulators, which resulted in a hefty $4.3 billion fine and the replacement of its founder, Changpeng Zhao, with Teng as CEO.
The reorganization appears to be part of a broader strategy to adapt to the post-settlement landscape, ensuring compliance and operational resilience.
Under the leadership of Binance co-founder Yi He, Binance Labs has become a central force in the crypto venture capital space.
Funded primarily through scholarship profits, it has established itself as a key player, supporting around 250 projects, including notable names like Sky Mavis, Aptos Labs and Polygon.
The company functions as both an investor and an incubator, with a focus on developing startups in various blockchain ecosystems.