A group of prominent Ethereum backers from Asia is preparing to establish a $1 billion digital asset treasury (DAT) firm. This ambitious initiative will be spearheaded by influential figures in the crypto space, including Huobi founder Li Lin, Fenbushi Capital founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu Inc. founder Cai Wensheng. Reports indicate that the team plans to acquire a Nasdaq-listed company to facilitate the launch, with several investors already committing hundreds of millions of dollars to the venture.
High-Profile Backers Behind the $1 Billion Initiative
The group behind this digital asset treasury firm features well-known names from Asia’s crypto industry. Li Lin, the founder of Huobi and chairman of Avenir Capital, stands out as a key figure. His company, Avenir, manages over $1 billion in assets and has pledged $200 million to the project. Another pivotal player is Shen Bo, the founder of Fenbushi Capital, which was co-founded by Ethereum creator Vitalik Buterin in 2015.
Other notable backers include Xiao Feng of HashKey Group, an organization that supports blockchain development, and Cai Wensheng, the founder of Meitu Inc. Wensheng has been a vocal advocate for crypto, recognized for his early investments in Bitcoin and Ethereum. His company, Meitu, was among the first public firms to establish a crypto treasury in 2021, acquiring $40 million worth of Bitcoin and Ethereum.
Plans for Acquiring a Nasdaq-Listed Firm
The team’s strategy for creating the $1 billion ETH treasury involves acquiring a Nasdaq-listed firm. This strategic move will enable them to leverage the existing infrastructure of the public company for their digital asset management operations. The backers are reportedly aiming to finalize the acquisition with significant commitments from regional investors, including HongShan Capital Group.
By acquiring a public company, the project will gain access to the resources needed to expand its digital asset portfolio. This move is anticipated to accelerate their plans to manage Ethereum-based assets and broaden the firm’s reach in the global market. The backers are focused on building a robust platform for digital asset management while ensuring a strong connection to Ethereum, which has garnered increased interest in recent months.
Ethereum’s Growing Appeal in Digital Asset Treasury Sector
While Bitcoin continues to dominate the digital asset treasury (DAT) landscape, Ethereum’s allure is on the rise. Firms like BitMine, the second-largest crypto treasury, and SharpLink, backed by ConsenSys, are pivotal in enhancing Ethereum’s visibility in this sector. Compared to the U.S. and Canada, China has seen fewer digital asset treasury firms; however, this initiative from Asia’s Ethereum backers signifies a burgeoning trend in the region.
The increasing appeal of Ethereum is attributed to its growing recognition as a valuable asset in treasury management strategies. Ethereum’s market performance and unique use cases, such as decentralized finance (DeFi) and smart contracts, have elevated its significance in the digital asset ecosystem.
This new project seeks to harness that potential and propel Ethereum’s further adoption within the global digital asset arena. These influential Ethereum backers are strategically positioning themselves to play a critical role in shaping the future of Ethereum and digital asset treasury management. Their planned $1 billion initiative marks a significant milestone in integrating Ethereum into the expanding digital asset sector.
