Ethereum Buys Surge As Jack Ma-Linked Yunfeng Financial Invests $44 Million

Ethereum (ETH) adoption exhibits no indicators of slowing down, because the second-largest cryptocurrency by market cap continues to draw corporations seeking 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 most recent entity to spend money on Ethereum. The agency bought 10,000 ETH value 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 develop into areas akin to 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 help infrastructure for RWA tokenization. The firm added:

This measure will 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 consumer’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 progressive enterprise eventualities 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 eventualities. This may embody utilizing ETH as collateral for DeFi loans or utilizing it to supply liquidity.

In comparable information, Ethereum-focused agency Ether Machine announced that it had raised $654 million value of ETH in non-public financing, forward of its highly-anticipated Nasdaq itemizing later this 12 months.

To recall, the Ether Machine was fashioned through a merger between the Ether Reserve and Dynamix Corporation earlier this 12 months. The agency is anticipated to go public with nearly 500,000 ETH, value $2.16 billion.

Will ETH Flip Bitcoin?

Although Bitcoin (BTC) stays the most important cryptocurrency with a market cap exceeding $1 trillion, ETH is steadily catching up. Recent information shows 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 lately dubbed ETH the “Wall Street token.” At press time, ETH trades at $4,299, down 1.4% over the previous 24 hours.