It is a pivotal step for the company which bridges the gap between the traditional finance and blockchain technology.
Yunfeng Financial Group Limited, a Hong Kong-listed company co-founded by Alibaba’s Jack Ma, has confirmed its Ethereum acquisition. The purchase of 10,000 ETH, valued at least $44 million, is a part of the company’s broader strategy to expand its Web3 technology.
The purchase was carried out on the open market and financed entirely with its internal cash reserves, which allows Yunfeng to strengthen its balance sheets with ETH as a strategic reserve asset. It also helps the company to boost confidence in the long-term role within global finance.
In a disclosure published on Tuesday, Yunfeng revealed that the ETH holdings would help diversify its asset base and reduce reliance on traditional fiat currencies. The Ethereum acquisition will also push the company’s Web3, real-world assets (RWA), digital currency, and artificial intelligence (AI), which it revealed in July.
Yunfeng said, “The Board believes that the ETH’s inclusion as the Company’s strategic reserve assets is consistent with the Group’s layout of expansion into frontier areas, including Web3, and provides key infrastructure support for Real World Assets (RWA) tokenization activities.”
Jack Ma, the co-founder of Alibaba Group, is a Chinese entrepreneur who is actively investing in crypto despite China’s crypto ban. But because he is associated with Yunfeng, a Hong Kong-based company, Ma can indirectly accumulate Ethereum without technically violating Beijing’s mainland ban.
Ma has been expanding his digital innovation in Web3, tokenized real-world assets, ESG-focused investments, and artificial intelligence, through Yunfeng.
Yungeng’s move may be small compared to the giants who hold billions in crypto reserves, but it can play a crucial role in defining the future of financial systems. The bold move made by the financial company reflects a broader trend of adopting cryptocurrencies into traditional finance. It bridges the gap between the conventional market and blockchain technology, which can inspire international firms to adopt crypto.
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