Ethereum (ETH) adoption reveals no indicators of slowing down, because the second-largest cryptocurrency by market cap continues to draw companies trying to diversify their company treasury methods.
Yunfeng Monetary Buys $44 Million In Ethereum
In keeping with an announcement earlier in the present day, Hong Kong-listed Yunfeng Monetary Group is the most recent entity to spend money on Ethereum. The agency bought 10,000 ETH price roughly $44 million.
The announcement states that the ETH buy was primarily funded by means of inside money reserves. Notably, on July 14, the agency disclosed plans to increase into areas comparable to Web3, Actual World Property (RWA), and synthetic intelligence (AI).
For the uninitiated, Yunfeng Monetary Group is a Hong Kong-based publicly-listed agency providing funding and monetary providers. Notably, Chinese language billionaire Jack Ma is a key affiliate of the group.
Relating to the ETH acquisition, the corporate defined that Ethereum was chosen over different digital property to help infrastructure for RWA tokenization. The corporate added:
This measure may even facilitate the Group’s technological innovation within the Web3 area, and understand the excellent and natural integration of finance with know-how for its shoppers, which can successfully improve shopper’s service expertise and monetary autonomy. However, the Firm will discover the potential relevant fashions of ETH within the Group’s insurance coverage enterprise, in addition to progressive enterprise eventualities appropriate with Web3.
The announcement additionally famous that Yunfeng Monetary Group intends to categorise ETH as an funding asset on its steadiness sheet. Holding ETH will assist diversify its asset base and cut 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 eventualities. This might embody utilizing ETH as collateral for DeFi loans or utilizing it to offer liquidity.
In related information, Ethereum-focused agency Ether Machine introduced that it had raised $654 million price of ETH in non-public financing, forward of its highly-anticipated Nasdaq itemizing later this yr.
To recall, the Ether Machine was shaped by way of a merger between the Ether Reserve and Dynamix Company earlier this yr. The agency is predicted to go public with virtually 500,000 ETH, price $2.16 billion.
Will ETH Flip Bitcoin?
Though Bitcoin (BTC) stays the most important cryptocurrency with a market cap exceeding $1 trillion, ETH is steadily catching up. Current knowledge reveals that Ethereum exchange-traded funds (ETFs) are already outshining their BTC counterparts.
One main issue driving ETH adoption is its broad vary of use instances. VanEck CEO Jan van Eck just lately dubbed ETH the “Wall Avenue 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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