CZ Joins Genius as YZi Labs Invests $10M+ in Private On-Chain Trading

• YZi Labs and Changpeng Zhao (CZ) have injected an eight-figure sum into Genius Trading.
• They are doing this to build a privacy-focused on-chain alternative to CEXs like Binance.
• The platform introduces “Ghost Orders” using multi-party computation (MPC) to hide large trades from public view and prevent market manipulation.

Genius Trading is building a new way to trade crypto that feels like a centralised exchange. However, this new method of trading stays entirely on the blockchain. 

YZi Labs, the investment firm led by Binance founder Changpeng Zhao, just announced a major eight-figure investment in the project. 

Along with the funding, Zhao is joining the team as an advisor. 

Why YZi Labs Is Betting Big on Genius Trading

The crypto space is moving away from big, central hubs and more people want to trade directly on the blockchain, where they can keep control of their own money. 

However, trading on a public ledger has one big flaw, because every move you make is visible to everyone else. If a large trader tries to buy or sell a lot of tokens, others can see the order and jump in front of it. 

This causes the price to move before the trade even finishes.

YZi Labs sees this problem as a “transparency bug”, and they believe Genius Trading can fix it. Instead of being just another decentralised exchange, the platform acts as a terminal. 

It connects to many different blockchains and finds the best way to execute trades. It also offers the speed and privacy people expect from a place like Binance, but without the need for a middleman.

Solving the Problem of On-Chain Privacy

The biggest feature of this new platform is something called Ghost Orders. When you place a large trade, Genius Trading uses multi-party computation to split that order across many different wallets. 

To an outside observer, it looks like a bunch of small, unrelated trades. However, this masks a trader’s real intent and prevents others from trading against them.

This system remains non-custodial, meaning traders never give up their private keys. Traders still own their assets at every step, but they get the discretion that professional traders need. 

Scaling Fast Across Ten Different Blockchains

Genius Trading is not starting from zero. Even before this public announcement, the platform processed more than $160 million in trading volume. 

It already supports ten major blockchains. This list includes heavy hitters like Ethereum, Solana and BNB Chain. This means that users can handle spot trading, perpetual futures and even copy trading from a single interface.

YZi Labs manages about $10 billion in assets and focuses heavily on infrastructure. 

They want to back the tools that make the entire crypto ecosystem work better, and by supporting Genius Trading, they are helping build a command centre for the next generation of power users. 

This fits their strategy of moving away from simple apps and toward the main layers of the industry.

The TrendToward Decentralised Venues

The data shows that more traders are leaving centralised platforms. In early 2021, decentralised exchanges only handled about 6% of the market volume. 

By late last year, that number jumped to over 21%. During busy months, it has even gone as high as 37%. As this trend continues, the need for professional tools like Genius Trading becomes much more obvious.

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