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Yunfeng Financial purchases 10,000 ETH as a strategic reserve
Yunfeng Financial Group Limited — the Hong Kong-listed financial services arm co-founded by Alibaba’s Jack Ma — announced on September 2 that it purchased roughly 10,000 Ethereum (about $44 million). The acquisition, disclosed via a voluntary filing to the Hong Kong Stock Exchange and signed by executive director and interim CEO Huang Xin, marks Yunfeng’s formal entry into cryptocurrency markets and a notable example of a Chinese financial firm adopting a crypto treasury strategy.
Deal structure and funding
The company stated that the ETH purchase was funded entirely from internal cash reserves and approved by the board as strategic reserve assets. Unlike some public companies that raise external financing for digital-asset purchases, Yunfeng relied on existing liquidity, and it will reflect the Ethereum stake as investments on its financial statements.
Strategic rationale: Web3, RWA tokenization and insurance use cases
Yunfeng says the move aligns with its July 2024 strategic roadmap prioritizing Web3, Real-World Asset (RWA) tokenization, digital currency, ESG Net-Zero Assets, and artificial intelligence. Management expects the ETH holdings to underpin blockchain-based product development, provide infrastructure support for tokenizing real-world assets, and power new Web3 client services. The firm also plans to evaluate Ethereum applications within its insurance business and other fintech services.
From private equity roots to crypto-enabled finance
Yunfeng Financial operates as the public vehicle stemming from Yunfeng Capital, the private equity firm Jack Ma co-founded with David Yu in 2010. The company offers brokerage, asset management, insurance and fintech solutions across Asia, and this Ethereum allocation underscores a strategy of deeper integration between traditional finance and blockchain technology to enhance client services and operational autonomy.
Context: China’s evolving stance and the corporate crypto treasury trend
The acquisition comes amid gradual shifts in China’s approach to digital assets. While cryptocurrency trading remains heavily restricted on the mainland, Chinese regulators and institutions increasingly acknowledge blockchain’s role in financial infrastructure, stablecoins, and tokenization. Yunfeng’s public disclosure places it among a growing list of listed companies worldwide embracing crypto treasuries — positioning itself alongside firms such as SharpLink Gaming and Bitmine — but it stands out as one of the highest-profile Chinese financial services firms to make such a move under current regulatory constraints.
Market and investor implications
For investors and the broader crypto market, Yunfeng’s Ethereum purchase signals institutional interest in using ETH as a strategic reserve and operational asset for Web3 innovation. Potential benefits include portfolio diversification, hedging against fiat volatility, and enabling RWA tokenization initiatives. Risks remain: ETH price volatility, evolving regulation in Greater China, and accounting and custody considerations. Still, the decision illustrates how established financial players are adapting to blockchain opportunities while managing regulatory realities.
Overall, Yunfeng’s purchase of 10,000 ETH highlights a pragmatic approach to digital-asset adoption — using a corporate treasury allocation to support product development, tokenization activity, and long-term fintech strategy.
Source: finance.yahoo
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