CZ Family Office Backs BNB Treasury Company for US IPO

Binance Founder's Investment Firm Supports New Treasury Company

Binance co-founder Changpeng Zhao's family office is backing a new treasury firm that will offer investors exposure to BNB with plans to go public in the United States. YZi Labs announced its support for investment firm 10X Capital in launching a BNB treasury company that will pursue a listing on a major US exchange.

Leadership Team and Structure

The firm, referred to as the "BNB Treasury Company," will appoint David Namdar as CEO. Namdar serves as a senior partner at 10X Capital and co-founder of Galaxy Digital, where he previously worked as co-head of trading. 10X Capital will function as the asset manager of the planned BNB buying company.

Growing Trend of Crypto Treasury Companies

The planned company represents the latest development in a growing trend of firms accumulating large amounts of cryptocurrencies, particularly Bitcoin, providing Wall Street with vehicles for exposure to digital assets. These treasury companies have become increasingly popular among institutional investors seeking cryptocurrency exposure.

Understanding BNB Token

BNB, formerly known as Binance Coin, is a token created by cryptocurrency exchange Binance, the world's largest by volume. The token provides holders with discounts on the platform and is utilized in products on the BNB Chain blockchain that Binance created in 2019.

Market Positioning and Benefits

Ella Zhang, head of YZi Labs, stated that BNB Chain is one of the most widely adopted blockchain ecosystems. The company believes expanding institutional access can deliver meaningful benefits to the broader public.

Hans Thomas, founder and CEO of 10X Capital, noted that BNB Chain is one of the largest, highest-performing digital assets ecosystems globally, powering hundreds of millions of users. However, institutional and retail investors in the US have limited exposure to BNB's growth.

Financing and Timeline

The planned company expects to announce the closing of its related financing in the coming weeks, according to the official statement. This timeline suggests rapid development and strong investor interest in the project.

CZ's Significant BNB Holdings

Zhao revealed in February that 98.5% of his crypto portfolio consists of BNB tokens, though he did not specify the total value of his holdings. Forbes reported in June 2024 that Zhao and Binance together control nearly 96% of the BNB tokens in circulation.

According to reports, Zhao owns 94 million BNB tokens, currently worth nearly $63 billion and accounting for over 64% of BNB's circulating supply. Binance controls an additional 31.5% of the supply.

Regulatory Considerations

Zhao is banned from managing Binance as part of a deal with the US to plead guilty to money laundering violations. However, he remains the exchange's biggest shareholder, maintaining significant influence over the ecosystem.

Current Market Performance

BNB has shown positive performance, trading above $670 with a 1.3% increase in the past 24 hours. This performance demonstrates continued market confidence in the token despite regulatory challenges.

Industry-Wide Adoption

Many public companies have begun stockpiling Bitcoin and other cryptocurrencies. The Nasdaq-listed Chinese chip designer Nano Labs plans to buy up to $1 billion worth of BNB and completed its first purchase of $50 million earlier this month.

Other companies, including Singapore Web3 firm Trident Digital and Chinese auto firm Webus, have announced plans to spend hundreds of millions acquiring and holding XRP tokens.

Market Demand

Zhao noted on social media that there are over 30 teams interested in creating BNB treasury public companies. This high level of interest demonstrates significant market demand for BNB exposure through traditional financial instruments.

Future Outlook

The establishment of this BNB treasury company represents a significant step toward mainstream adoption of BNB and the broader cryptocurrency ecosystem. By providing institutional investors with regulated exposure to BNB, the company could drive increased adoption and liquidity for the token.

The planned US IPO will offer retail and institutional investors a familiar investment vehicle to gain exposure to one of the world's largest cryptocurrency ecosystems. This development could pave the way for similar treasury companies focused on other major cryptocurrencies.

Conclusion

The backing of this BNB treasury company by CZ's family office represents a significant development in the cryptocurrency investment landscape. With strong leadership, institutional backing, and clear market demand, the company is well-positioned to provide valuable exposure to the BNB ecosystem for US investors through traditional financial markets.