CZ’s YZi Labs Leads $50M Bet On Stablecoin Payments Firm
Changpeng Zhao’s YZi Labs has led a $50 million seed funding round for Better Payment Network (BPN), a startup building stablecoin-based cross-border payment rails.
The venture capital firm, formerly known as Binance Labs and the manager of Binance co-founder CZ’s wealth, said the investment aligns with its strategy to back next-generation financial infrastructure.
”I believe Better Payment Network (BPN) is a true game-changer for cross-border payments, delivering instant settlement with significant cost savings and rapid processing,” said Dana H, an investment partner at YZi Labs. ”We’re excited to see crypto and blockchain drive real-world impact, and BPN is pioneering that future.”
BPN Aims To Free Up Locked Capital
BPN said systems that place stablecoins at their core adopt a hybrid centralized and decentralized finance (CeDeFi) architecture. This is to balance efficiency, programmability, and regulatory alignment, the announcement said.
The issue with that approach is that traditional fintech platforms rely on “capital-intensive pre-funding models,” that force “trillions of dollars to sit idle in local accounts” in order to maintain payment liquidity.
BPN aims to solve that issue through its “dual-rail system,” which the team says enables “real-time stablecoin minting, swapping, and burning across jurisdictions.” This, the team says, frees up the locked capital.
The system is built on the BNB Chain, and aims to deliver instant, low-cost, and compliant cross-border settlements that complete in just 3-4 hours.
This is considerably faster than the current 1-2 days it takes for cross-border payments to settle, BPN said. The average fee for transactions within the BPN system will be 0.30%, which is much lower than the current 2%.
BPN said that the newly-raised funds will be used primarily to establish initial on-chain liquidity pools for “stablecoin-to-stablecoin corridors.”
will also be used to develop an early market-making ecosystem. This, they said, will provide the project with a foundation that will help maintain “fair and efficient on-chain FX rates.”
Stablecoin Market Cap Continues To Soar
The investment in BPN comes as the stablecoin market’s capitalization surges $300 billion. It’s added $3.165 billion to its market cap in the past week to reach $307.225 billion, data from DefiLlama shows.
Stablecoin market cap (Source: DefiLlama)
A catalyst for that growth has been the increasing regulatory clarity around stablecoins globally.
In the US, President Donald Trump signed the GENIUS Act into law in July, providing regulatory clarity for companies that want to issue stablecoins in the US. T
The European Union has already enforced its Market in Crypto-Assets Regulation (MiCA) and Hong Kong has passed a Stablecoin Bill with licensing expected in 2026. Bahrain has alos introduced its own Stablecoin Issuance and Offering module.
But there has been some pushback from major banks. They argue that the rise in stablecoins could drain capital from the traditional banking system and negatively impact their ability to offer loans.
Stablecoin supporters say that banks are pushing back against these tokens in an effort to limit competition, especially since the digital assets offer much higher yields than traditional savings accounts in multiple regions.
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