In recent years, companies and states have increasingly incorporated cryptocurrencies into their treasuries. Traditionally, corporate treasuries relied on cash, gold, or government bonds to maintain value, ensure liquidity, and financial stability. Governments held gold reserves to back their currencies.
However, cash is losing purchasing power. Bonds carry interest rate and duration risk. Exchange shocks have hit balances without warning. Ideally, a reserve that holds value, crosses borders quickly, and integrates into digital systems is desirable. This is why Bitcoin and Ethereum, and in some cases, stablecoins now stand alongside cash, gold, and treasury bills.
For corporations, the task is straightforward: protect against inflation, diversify currency exposure, maintain liquidity 24/7, and test digital asset settlement. For sovereign states, meanwhile, the task expands to strategic reserves, resilience to sanctions, and access to neutral, global liquidity.
Bitcoin Treasuries, the Digital Gold Standard
Since its inception, Bitcoin has held a unique position as the first and most well-known cryptocurrency, often referred to as the digital equivalent of gold. It is an attractive option for treasuries looking to protect against inflation and risks associated with traditional currencies.
U.S. Senator Cynthia Lummis proposed legislation called the Bitcoin Act. If it becomes law, it would require the U.S. Department of the Treasury to acquire one million bitcoins over five years for federal reserves. Earlier, in March 2025, President Donald Trump announced the Strategic Bitcoin Reserve, a reserve asset funded by seized bitcoins from the U.S. Department of the Treasury.
El Salvador drew attention in 2021 by adopting Bitcoin as legal tender, while countries like Bhutan quietly included Bitcoin in their reserves. In the corporate world, Strategy is known for its continuous acquisition of Bitcoin, making it a primary asset in its treasury.
Bitcoin offers several advantages. It is highly liquid due to active global markets, scarce due to its limited supply, and widely recognized across the financial world.
Although it has its drawbacks, such as price volatility affecting balances, the positives outweigh the negatives.
Ethereum Treasuries, the Programmable Alternative
While Bitcoin remains the cornerstone of crypto treasuries, Ethereum has become popular as an attractive alternative, especially after its transition to proof-of-stake in 2022. This change reduced energy consumption and introduced staking, which generates annual returns of three to five percent, making Ethereum a productive asset unlike Bitcoin. For treasuries, this positions Ethereum as both a store of value and a source of income.
Ethereum’s ecosystem adds to its value. Through decentralized finance (DeFi), treasuries can access liquidity without selling their holdings. The increasing use of tokenized real-world assets (RWA), such as bonds or commodities, strengthens Ethereum’s role as a financial platform.
Institutional acceptance of Ethereum is on the rise. Companies are beginning to hold it, and asset managers are offering ETFs for regulated investments.
