Binance Founder Launches BNB Treasury Company With 10X Capital

Changpeng Zhao, the founder and former CEO of Binance, has initiated a significant venture through his new company, YZi Labs. In partnership with investment firm 10X Capital, YZi Labs aims to establish a new treasury company focused on the BNB altcoin. This strategic move is designed to offer institutional investors a regulatory-compliant way to access BNB by listing BNB-backed shares on a major US exchange, marking the first such model since Bitcoin's notable milestones.

The primary goal of this initiative is to attract institutional funds interested in the potential benefits of BNB coins without the necessity of opening wallets in the US. This approach simplifies the investment process for institutional players and ensures compliance with regulatory standards, making it a more attractive option for those looking to diversify their portfolios with cryptocurrencies.

YZi Labs' BNB Treasury Strategy is led by David Namdar, co-founder of Galaxy Digital. While 10X Capital will handle asset management, YZi Labs will oversee the model’s execution. The strategic plan involves gradually building a substantial BNB portfolio and publicly offering shares on a New York-based exchange. This move is designed to provide a transparent, ETF-like reporting structure while ensuring compliance with regulatory requirements, allowing intermediaries to hold crypto positions effortlessly.

Changpeng Zhao holds 98.5% of his portfolio in BNB, owning 94 million BNB as of June 2024, which represents 64% of its circulating supply. When combined with Binance’s controlled share of 31.5%, a large portion of the altcoin remains concentrated within the same ecosystem. YZi Labs executives mentioned they have interacted with over thirty teams interested in implementing the “BNB treasury” concept, aiming for ETF-like transparency in reporting and regulatory compliance for intermediary holdings.

Chip manufacturer Nano Labs, listed on Nasdaq, became one of the first public companies to adopt this model. Allocating $50 million, it purchased around 74,000 BNB with a target to acquire up to $1 billion worth, capturing 10% of the supply. Officials indicated evaluating the issuance of future borrowing instruments with cryptocurrency baskets as collateral.

Following these announcements, Nano Labs’ shares surged to $22, while BNB’s price climbed 2.7% to reach $670. Companies like Trident Digital and Webus unveiled similar plans, indicating a potential shift for the altcoin from being merely a service-oriented currency to a broader financial asset. If these strategies succeed, BNB’s recognition as a significant financial entity beyond its exchange-based origins could vastly increase.

This initiative underscores Changpeng Zhao's commitment to advancing the cryptocurrency ecosystem. His vision for a more inclusive and regulated market is evident in this groundbreaking partnership. By providing institutional investors with a compliant and accessible way to invest in BNB, Zhao is not only driving the adoption of cryptocurrencies but also setting a new standard for how digital assets can be integrated into traditional financial systems.

The success of this initiative could have far-reaching implications for the cryptocurrency market. It could encourage more institutional investors to explore digital assets, leading to increased liquidity and stability. Moreover, it could serve as a blueprint for other cryptocurrencies looking to attract institutional funds, thereby fostering a more robust and diversified market.