- CZ has made third-party custodians mandatory for BNB DAT projects seeking funding from YZi Labs.
- The move follows QMMM’s disappearance with investor funds, which raised major concerns about security and transparency.
- China Renaissance and YZi Labs are preparing a $600 million BNB treasury investment, signaling growing institutional interest.
As interest in BNB-based digital asset treasuries rises, Binance founder Changpeng “CZ” Zhao has issued a new safety directive. He’s made it clear that any BNB DAT project seeking investment from YZi Labs must now partner with a verified third-party custodian. The move follows rising concern over security and transparency after a recent crypto treasury scandal.
The QMMM Scandal Sparks Industry Panic
The announcement came right after QMMM, a crypto treasury firm, reportedly disappeared with investors’ funds. The company had earlier claimed plans to invest $100 million across Bitcoin, Ethereum, and Solana—sending its stock soaring almost tenfold. Not long after, the U.S. SEC accused QMMM of manipulating its stock through social media hype. Now, its Hong Kong offices are deserted, leaving investors worried and regulators on edge.
This situation triggered CZ’s renewed call for safer treasury practices. He emphasized that firms managing BNB treasuries must use trusted custodians and allow independent audits to avoid repeating QMMM’s mistakes. For any DAT project courting YZi Labs’ funding, this will no longer be optional—it’s a must.
Why Third-Party Custodians Matter
Third-party custodians act as a safeguard between companies and their assets, reducing the risk of insider fraud or sudden collapses. With more traditional institutions entering the crypto treasury space, the demand for reliable oversight has grown sharply. CZ’s stance highlights a broader push within Binance and the BNB ecosystem to maintain investor confidence amid the volatile market environment.
The BNB Digital Asset Treasury trend shows no signs of slowing down, but so do the associated risks. By enforcing custodian use, CZ aims to build a more transparent foundation—one where investors feel protected, not preyed upon.
China Renaissance and YZi Labs Eye BNB Expansion
Meanwhile, China Renaissance Holdings, a Beijing-based investment bank, is reportedly raising around $600 million to set up a new BNB treasury. Sources suggest YZi Labs and China Renaissance together could contribute about $200 million, with the bank covering roughly half that amount. Other firms, like Applied DNA Sciences, have already raised up to $58 million for similar BNB-focused strategies, signaling that institutional crypto treasuries might soon become a mainstream asset class.
As this wave grows, CZ’s message couldn’t come at a better time. The crypto world is still learning that transparency isn’t just good ethics—it’s survival.
