YZi Labs Leads $25.5 Million Strategic Funding for Sign: Boosting Sovereign Blockchain Infrastructure in 2025

In a significant development for blockchain infrastructure, YZi Labs—formerly Binance Labs—has led a $25.5 million strategic funding round for Sign, a protocol focused on digital infrastructure and sovereign blockchain solutions. Announced on October 21, 2025, the investment also includes participation from IDG Capital, bringing Sign’s total funding to over $55 million across seed, Series A, and strategic rounds. Sign, which builds bridges between traditional finance and blockchain for national-scale digital identity and payment systems, aims to target 50 million users in its first year. This round underscores growing investor interest in interoperable Web3 protocols amid DeFi’s $150 billion+ TVL surge in 2025.

Sign’s Focus: Sovereign Blockchain and Digital Identity

Sign develops on-chain infrastructure to enable verifiable credentials and seamless cross-chain messaging, powering decentralized identity systems for governments and enterprises. Its protocol supports Hyperledger Fabric, zero-knowledge proofs, and interoperability, facilitating secure data sharing without compromising privacy. The new capital will expand Sign’s technical team, attract talent in these areas, and establish local teams in multiple countries. CEO Xin Yan stated: “Sign is committed to building digital infrastructure and plans to use the funds to expand its core team.” Additionally, resources will fuel partnerships to advance sovereign blockchain adoption, including tokenized RWAs and payment rails compliant with frameworks like MiCA and the GENIUS Act.

YZi Labs Investment Partner Dana H. noted: “Sign’s development is a natural progression from serving individual users to enterprises and now sovereign clients, enabled by the BNB Chain ecosystem.”

Implications for DeFi and 2025 Trends

This funding reflects a broader trend in 2025: Crypto infrastructure firms targeting public-sector integrations for decentralized identity and verifiable utilities. Sign’s emphasis on sovereign applications could solidify its role in digital sovereignty solutions, potentially driving $10 billion in tokenized credentials by 2026. For DeFi users, it enhances secure, scalable protocols for RWAs and cross-chain dApps, reducing fragmentation. Yet, competition from established players like Chainlink and regulatory demands for audits pose challenges.

In summary, YZi Labs’ $25.5 million lead in Sign accelerates blockchain’s sovereign potential, blending innovation with enterprise-grade security for 2025’s DeFi evolution.