Ethereum Co-Founder Announces Shift From TradFi to DeFi for Bitcoin and Ethereum Treasuries

Coin WorldMonday, Jun 16, 2025 8:20 pm ET
1min read

Ethereum co-founder Joseph Lubin recently announced a significant shift in financial strategies for Bitcoin and Ethereum treasuries, emphasizing the transition from traditional finance (TradFi) to decentralized finance (DeFi). This announcement, made on the X platform, highlights the growing acceptance of DeFi methods and their potential to reshape global treasury discussions.

Lubin's comments underscore the critical role of Bitcoin and Ethereum in transforming traditional financial structures. This move reflects a growing confidence and institutional engagement with decentralized protocols, as evidenced by companies like

. The ripple effect of this shift could impact industries reliant on established financial systems, prompting traditional finance firms to incorporate digital assets as core treasury components. This alignment with evolving market demands for decentralized solutions could propel DeFi and Layer 2 tokens to new heights.

Regulatory changes may spur further institutional interest, accelerating the adoption of blockchain technologies in corporate environments. This trend is reminiscent of historical patterns, such as MicroStrategy's pioneering investments in Bitcoin. As institutional interest rises, enhanced clarity in regulations and investing frameworks could drive more robust adoption of DeFi solutions. This shift is part of a broader trend where firms are exploring new ways to manage capital, including the use of preferred shares to buy Bitcoin. Michael Saylor, for instance, announced plans to raise capital to buy Bitcoin through a combination of at-the-market common share sales and debt.

Sixty-one publicly-listed companies, not primarily engaged in digital assets, have already implemented Bitcoin treasury strategies. This trend indicates a move away from traditional treasury assets and towards digital assets, reflecting a growing acceptance of cryptocurrencies in mainstream finance. The success of these strategies remains uncertain, particularly given the current high prices of cryptocurrencies. However, the shift towards Bitcoin and Ethereum treasuries is seen as a step towards legitimizing these assets in mainstream portfolios, including retirement accounts. This legitimization could accelerate the adoption of DeFi by firms, as predicted by Ethereum co-founder Joseph Lubin.

Companies like

Inc. have announced their Bitcoin Treasury Strategy, emphasizing the long-term holding of Bitcoin as a treasury asset. This strategy is part of a broader trend where firms are exploring new ways to manage capital. The growing acceptance of cryptocurrencies in corporate treasuries is a clear indication of the evolving financial landscape, where digital assets are increasingly seen as a viable alternative to traditional treasury assets. The success of these strategies will depend on various factors, including market conditions and regulatory developments. However, the trend towards Bitcoin and Ethereum treasuries signals a significant shift in financial strategies, with potential long-term implications for the global financial system.