Ethereum co-founder Vitalik Buterin has voiced support for corporations holding Ethereum (ETH) as a treasury reserve asset, citing its capacity to enhance financial flexibility.
However, Buterin issued explicit warnings against overleveraging ETH holdings, stating such practices could destabilize both the Ethereum market and corporate balance sheets. He highlighted price volatility and potential market impact as significant risks accompanying ETH treasury adoption.
The stance represents a strategic pivot from Buterin’s earlier criticisms of Bitcoin-centric treasury approaches. The developer now emphasizes ETH’s distinct utility advantages while maintaining caution against speculative excess.
His recommendations balance the endorsement of ETH’s treasury potential with firm advisories on risk management, urging companies to avoid strategies that might trigger cascading market repercussions.