Ethereum (ETH) adoption exhibits no indicators of slowing down, because the second-largest cryptocurrency by market cap continues to draw corporations trying to diversify their company treasury methods.
Yunfeng Financial Buys $44 Million In Ethereum
According to an announcement earlier at present, Hong Kong-listed Yunfeng Financial Group is the newest entity to put money into Ethereum. The agency bought 10,000 ETH price roughly $44 million.
The announcement states that the ETH buy was primarily funded via inner money reserves. Notably, on July 14, the agency disclosed plans to broaden into areas reminiscent of Web3, Real World Assets (RWA), and synthetic intelligence (AI).
For the uninitiated, Yunfeng Financial Group is a Hong Kong-based publicly-listed agency providing funding and monetary companies. Notably, Chinese billionaire Jack Ma is a key affiliate of the group.
Regarding the ETH acquisition, the corporate defined that Ethereum was chosen over different digital property to assist infrastructure for RWA tokenization. The firm added:
This measure may even facilitate the Group’s technological innovation within the Web3 subject, and understand the excellent and natural integration of finance with expertise for its purchasers, which is able to successfully improve shopper’s service expertise and monetary autonomy. On the opposite hand, the Company will discover the potential relevant fashions of ETH within the Group’s insurance coverage enterprise, in addition to revolutionary enterprise situations suitable with Web3.
The announcement additionally famous that Yunfeng Financial Group intends to categorise ETH as an funding asset on its stability sheet. Holding ETH will assist diversify its asset base and scale back reliance on conventional fiat currencies.
The Jack Ma-linked agency plans to leverage ETH in insurance coverage operations and decentralized finance-based (DeFi) enterprise situations. This may embrace utilizing ETH as collateral for DeFi loans or utilizing it to offer liquidity.
In comparable information, Ethereum-focused agency Ether Machine introduced that it had raised $654 million price of ETH in personal financing, forward of its highly-anticipated Nasdaq itemizing later this yr.
To recall, the Ether Machine was shaped through a merger between the Ether Reserve and Dynamix Corporation earlier this yr. The agency is anticipated to go public with nearly 500,000 ETH, price $2.16 billion.
Will ETH Flip Bitcoin?
Although Bitcoin (BTC) stays the biggest cryptocurrency with a market cap exceeding $1 trillion, ETH is steadily catching up. Recent knowledge exhibits that Ethereum exchange-traded funds (ETFs) are already outshining their BTC counterparts.
One main issue driving ETH adoption is its broad vary of use circumstances. VanEck CEO Jan van Eck lately dubbed ETH the “Wall Street token.” At press time, ETH trades at $4,299, down 1.4% over the previous 24 hours.
Featured picture from Unsplash.com, chart from TradingView.com
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