Key Notes
- Yunfeng's board approved the $44M Ethereum purchase using internal cash reserves without external financing for strategic expansion.
- The acquisition supports Web3 services and Real-World Asset tokenization as part of the company's July 2024 strategic roadmap priorities.
- This marks the highest-profile Chinese financial services firm adopting cryptocurrency treasury strategies amid ongoing regulatory restrictions.
Yunfeng Financial Group Limited, the Hong Kong-listed company co-founded by Alibaba’s Jack Ma, announced a purchase of $44 million in Ethereum ETH $4 322 24h volatility: 1.7% Market cap: $521.61 B Vol. 24h: $32.10 B , close to 10,000 ETH, on September 2, marking its expansion into cryptocurrency markets amid China’s evolving stance on digital assets.
Ma’s Financial Empire Makes $44M Crypto Bet
The financial services firm disclosed the purchase of 10,000 ETH tokens through a voluntary announcement to the Hong Kong Stock Exchange. Yunfeng’s board approved the cryptocurrency acquisition as strategic reserve assets, funded entirely through internal cash reserves rather than external financing—a different approach from other public companies, such as SharpLink .
The executive director and interim CEO, Huang Xin, signed the announcement, stating that the purchase aligns with the company’s July 2024 strategic roadmap, which prioritizes the Web3, Real-World Assets tokenization, digital currency, ESG Net-Zero Assets, and artificial intelligence sectors.
The Ethereum holdings will be reflected as investments on Yunfeng’s financial statements, supporting technological innovation across blockchain-based services.
From Alibaba to Crypto: Jack Ma’s Next Chapter
Yunfeng Financial operates as the publicly traded arm of Yunfeng Capital, the private equity firm Ma co-founded with David Yu in 2010. The company provides comprehensive financial technology services, including brokerage, asset management, insurance, and fintech solutions across Asian markets.
The timing of Yunfeng’s cryptocurrency investment reflects broader shifts in China’s approach to digital assets and blockchain technology. While maintaining restrictions on cryptocurrency trading, Chinese authorities are increasingly recognizing the applications of blockchain technology in financial services and digital infrastructure development, such as stablecoins .
Yunfeng’s board emphasized that the Ethereum purchase provides infrastructure support for Real-World Asset (RWA) tokenization activities and Web3 client services. The company plans to explore ETH applications within its insurance business while developing innovative scenarios compatible with Web3 technology.
The financial firm’s strategy focuses on comprehensive integration between finance and technology, aiming to enhance the client service experience and economic autonomy by leveraging cryptocurrency capabilities. Management believes the digital asset allocation optimizes Yunfeng’s asset structure while reducing reliance on traditional currencies.
Chinese Giants Join Corporate Crypto Treasury Trend
The Ethereum acquisition positions Yunfeng among publicly traded firms adopting cryptocurrency treasury strategies, following companies like SharpLink Gaming and Bitmine globally. However, Yunfeng represents the highest-profile Chinese financial services firm making such an investment amid ongoing regulatory restrictions.
The cryptocurrency purchase demonstrates how Chinese entrepreneurs adapt to evolving regulatory landscapes while pursuing innovation opportunities. Yunfeng’s strategic approach through established financial institutions contrasts with Ma’s previous leadership of direct technology companies, reflecting lessons learned from the regulatory challenges faced by Alibaba and Ant Group in the past.
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