Consensys CEO Warns Against Leverage in Crypto Treasury Firms, Backs Ethereum and Stablecoins

During a recent interview with Bloomberg, Consensys CEO Joseph Lubin cautioned against excessive leverage in cryptocurrency treasury companies, warning that unchecked risk could lead to serious consequences. "It could get really ugly if you don't maintain prudent risk levels," Lubin stated.

Lubin highlighted SharpLink, Consensys’s newly launched Ethereum treasury firm, noting that it currently operates without leverage. While he didn’t rule out future leverage, he emphasized a cautious approach.

The rise of crypto treasury firms—entities managing crypto assets like Bitcoin and Ethereum for strategic holdings—has surged in recent months. However, market prices have remained largely flat despite growing institutional involvement.

Lubin attributed this stagnation to multiple macroeconomic and market-specific factors but predicted strong future demand. “We're going to see an amazing amount of accumulation in Ethereum and Bitcoin,” he said, adding that these assets could soon rival traditional reserve currencies as “high-powered money.”

On the topic of stablecoins, Lubin underscored their growing global relevance and emphasized their foundational role in boosting the U.S. dollar’s global influence. “Stablecoins are incredibly valuable for people around the world,” he noted, expressing excitement that most major stablecoin projects are built on Ethereum.

The Consensys chief remains optimistic about Ethereum’s central role in the future of decentralized finance (DeFi) and digital currencies, reinforcing its position as the core infrastructure for both stablecoins and crypto treasury innovation.

As crypto treasury models evolve, Lubin’s comments reflect both the promise and the potential pitfalls of this rapidly expanding sector—underscoring the need for smart risk management and continued innovation built on strong blockchain foundations like Ethereum.