Thursday, April 17, 20258 min read

DeFi vs. CeFi for Crypto Treasury Management in 2025: What Finance Teams Need to Know

Home>Crypto Treasury Management>DeFi vs. CeFi for Crypto Treasury Management in 2025: What Finance Teams Need to Know

Why DeFi vs CeFi Matters for Corporate Crypto Treasury Management

Treasury management is no longer just about fiat and traditional banking. In 2025, companies of all sizes are experimenting with digital asset treasuries — whether that’s holding stablecoins, allocating into DeFi protocols, or relying on CeFi platforms for custody.

But the big question remains: should finance teams trust decentralized finance (DeFi), centralized finance (CeFi), or a mix of both?

The truth is, it isn’t black and white. Each model comes with unique risks, benefits, and compliance implications. To build a resilient strategy, finance leaders need to understand how both options work and where they fit into the bigger picture of crypto treasury management.

What Is DeFi and CeFi? (Quick Definitions for Finance Teams)

Centralized Finance (CeFi): Crypto services run by traditional-style companies, such as exchanges, custodians, and lending platforms. You rely on their infrastructure, compliance, and customer service.
Decentralized Finance (DeFi): Peer-to-peer protocols running on smart contracts, where users interact directly with blockchain-based platforms. There are neither intermediaries nor a single point of control.

CeFi Pros and Cons for Corporate Treasury Management

✅ Pros

Built-in custody & compliance — Many CeFi providers offer regulated custody, insurance, and AML/KYC, making them attractive for risk-conscious CFOs.
User-friendly dashboards — Easier for finance teams without deep crypto experience.
Fiat on/off ramps — Smooth conversions between fiat and stablecoins for payroll, vendor payments, or liquidity needs.

❌ Cons

Custodial risk — If the platform freezes withdrawals, your funds may be stuck. History has shown how damaging this can be.
Lack of transparency — Limited visibility into how funds are managed or rehypothecated.
Siloed liquidity — Assets often locked in a single ecosystem, reducing flexibility.

DeFi Pros and Cons for Finance Teams Managing Treasuries

✅ Pros

Direct control — You hold the keys and interact directly with protocols.
Transparency — Smart contracts are open-source, so you can audit code and on-chain activity.
Higher yield potential — Access to liquidity pools, staking, and innovative yield strategies.

❌ Cons

Operational risk in crypto — One wrong wallet address, one buggy contract, and funds may be gone forever.
Liquidity risk in crypto — Smaller pools can dry up quickly in times of stress.
Regulatory uncertainty — Few clear rules, and future regulations may impose limits.
Complexity — Finance teams need strong technical knowledge and crypto accounting processes to manage it safely.

DeFi vs CeFi: Which Model Fits Your Corporate Treasury?

The answer depends on your priorities:

If compliance and ease of use matter most → CeFi is safer.
If autonomy and innovation are priorities → DeFi offers more flexibility.
If resilience is the goal → A hybrid approach is often best, blending CeFi’s guardrails with DeFi’s upside.

Hybrid Crypto Treasury Strategy: Combining DeFi and CeFi

Most finance teams won’t pick one side forever. Instead, they’ll combine DeFi and CeFi tools in a layered treasury strategy:

Core holdings → Stored with regulated CeFi custodians for compliance and insurance.
Working capital → Held in stablecoins with liquidity buffers.
Yield strategies → Allocated to DeFi protocols with transparent smart contracts.
Automated workflows → Tools to move assets between wallets, chains, or venues securely.

This hybrid approach balances security, liquidity, and return — while giving CFOs flexibility to adapt as regulations evolve.

Key Risks in DeFi and CeFi Treasury Management

No matter your mix, risk doesn’t disappear. Teams should plan for:

Operational risk in crypto — Avoid single points of failure with multi-sig/MPC custody and automated workflows.
Liquidity risk in crypto — Diversify across tokens and venues; keep reserves accessible.
Regulatory risk in crypto — Document policies, use crypto-savvy auditors, and track global changes (U.S., EU’s MiCA, Asia hubs).

Crypto Accounting and Compliance for Treasury Teams (GAAP & IFRS)

Whichever model you choose, your accounting team needs to keep up. Treasury activity in DeFi or CeFi must be reconciled into books under GAAP or IFRS standards.

Key steps include:

Documenting cost basis and revaluations
Logging staking rewards, fees, and realized gains
Proactively disclosing policies in financial statements

👉 See our blog on crypto accounting under GAAP and IFRS for a full breakdown.

5 Practical Steps to Build a Secure Crypto Treasury

Define objectives → Yield? Liquidity? Compliance? Risk appetite drives treasury structure.
Segment assets → Separate long-term holdings, working capital, and yield allocations.
Choose platforms wisely → Vet CeFi custodians for regulatory strength; audit DeFi protocols for transparency.
Automate workflows → Reduce human error with automated deposits, approvals, and reconciliations.
Review quarterly → Adjust based on regulations, market conditions, and business needs.

DeFi vs CeFi FAQs for Corporate Treasury Management

Q1. What is the difference between DeFi and CeFi in treasury management

DeFi is decentralized, giving teams direct control of assets through smart contracts. CeFi relies on regulated intermediaries like custodians and exchanges. The trade-off is control vs. compliance support.

Q2. Is DeFi safer than CeFi for corporate treasuries?

Not necessarily. DeFi removes custodial risk but adds smart contract and operational risk. CeFi simplifies compliance but introduces counterparty and custodial risks. Many companies use hybrid crypto treasury strategies to balance both.

Q3. What are automated crypto treasury workflows?

They’re tools that automate deposits, approvals, and transfers across wallets and protocols — reducing manual errors and improving security. These are critical for teams managing funds across DeFi and CeFi.

Q4. How do GAAP and IFRS treat crypto in treasury management?

Under U.S. GAAP, crypto is treated as an intangible asset at cost (with impairment rules). IFRS allows revaluation under IAS 38 if an active market exists. Finance teams need strong crypto accounting under GAAP and IFRS to ensure compliance.