Binance Labs has committed to investing $15 million into Xterio, a Web3 game platform and publisher. Xterio plans to use the funding to further game and technology development, including artificial intelligence (AI) integration and the launch of its tokens.

Binance Labs is the investment arm of Binance, the world’s largest crypto exchange by trading value, according to CoinMarketCap data. While the exchange has faced increasing regulatory scrutiny, Binance Labs has continued to invest in companies and recently grew its assets to $9 billion.

Xterio offers a free-to-play gaming platform and a GameFi-as-a-service product that helps developer partners create third-party games. The startup now plans to expand its AI-driven interactive experience and develop an AI toolkit that can generate consistent production-quality 2D and 3D assets.

“The Xterio ecosystem is expanding faster than ever and bridges free-to-play genres with on-chain gaming enhanced by AI capabilities,” said Yi He, co-founder of Binance and head of Binance Labs. “The Xterio core team brings together experienced Web2 professionals with Web3 expertise; we look forward to closely working with them to allow gamers around the world to experience rich on-chain gameplay.”

Xterio previously raised a $40 million round in August 2022 that was co-led by Makers Fund, XPLA and the now defunct FTX Ventures. As part of the new strategic partnership, Binance Labs will support Xterio’s growth and the startup's token will become part of the BNB Chain ecosystem.

Binance Labs Web3 Gaming Funding Rounds

Brandy Betz

Brandy covered crypto-related venture capital deals for CoinDesk. She previously served as the Technology News Editor at Seeking Alpha and covered healthcare stocks for The Motley Fool. She doesn't currently own any substantial amount of crypto.