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CZ Urges Third-Party Custodians for Digital Asset Treasury Firms

According to Binance founder CZ, Yzi Labs will only invest in BNB DAT projects that use independent custodians and undergo investor-led audits to maintain asset security and transparency.

BNB

Summary

Binance founder CZ reiterated on X that all Digital Asset Treasury (DAT) companies must employ third-party cryptocurrency custody services and have their accounts audited by investors. He stated this as a strict prerequisite for Yzi Labs’ participation in any BNB DAT investment, aiming to enhance asset protection and ensure transparency for stakeholders. The statement was presented as an official position from CZ to guide investment standards in the DAT sector.

Terms & Concepts
  • Digital Asset Treasury (DAT): An entity managing and allocating digital assets, including cryptocurrencies and tokens, typically within a corporate or institutional framework.
  • Crypto Custodian: A regulated third-party service that holds and safeguards clients’ digital assets, ensuring security and compliance.
  • BNB: The native cryptocurrency of Binance, used across its ecosystem for transactions, staking, and payment of trading fees.