- Joe Lubin is in talks with sovereign wealth funds and banks to build on Ethereum.
- Ethereum may replace Bitcoin in treasuries as Consensys backs a $425M ETH move.
- SharpLink plans to use Ethereum to earn yield through staking and DeFi protocols.
Ethereum co-founder and Consensys CEO Joe Lubin confirmed on Tuesday that his firm is in discussions with major sovereign wealth funds and leading banks from a “very big” country. These talks center around building infrastructure directly on Ethereum, raising speculation about possible ETH purchases as part of their investment strategies.
Lubin made the announcement during an interview on Rug Radio’s “Fomo Hour” episode. He suggested that the world may be entering a new decentralized supercycle led by Ethereum. His statements arrive just as Consensys supported a $425 million investment in SharpLink Gaming, a publicly traded company transitioning its treasury strategy to Ethereum.
From Bitcoin to Ethereum: A Shift in Treasury Strategies
Traditionally, sovereign wealth funds have leaned toward Bitcoin as a means to diversify their treasuries, due to its perception as digital gold. However, Ethereum’s expanding decentralized finance (DeFi) use cases and staking capabilities are presenting new opportunities.
Lubin stated, “There’s structural fatigue in the financial system. It’s breaking,” emphasizing that financial industry excesses and the hollowing of America’s middle class signal the end of a supercycle. He believes Ethereum offers the tools to rebuild that system through decentralized infrastructure.
Besides, he described Ethereum as a “trust commodity” that could become the foundation of a global financial structure. Additionally, he highlighted the Ethereum Foundation’s new “Trillion Dollar Security Initiative” aimed at improving network security to meet enterprise needs.
This focus on scalability and institutional readiness could make Ethereum attractive to wealth funds previously focused only on Bitcoin.
Related: Ethereum Holdings on Exchanges Reach New Seven-Year Low
SharpLink’s $425M ETH Treasury Pioneers a New Path
In a landmark move, Consensys led a $425 million initiative to help SharpLink Gaming develop a treasury based on Ethereum. SharpLink, unlike many institutions that store Bitcoin as a passive asset, plans to actively engage ETH through staking, restaking, and participation in DeFi protocols.
This approach aims to generate yield under controlled risk, demonstrating Ethereum’s potential as a productive asset. It also showcases a model where treasuries move beyond storage and adopt income-generating strategies.
Lubin’s partnership with sovereign wealth funds may copy this approach on a bigger scale. Whether or not those funds end up actually buying ETH remains unconfirmed; their interest in building on Ethereum is, however, a loud institutional vote of confidence. Additionally, the formation of such partnerships may bring Ethereum further into the spotlight as a significant treasury asset for governments and large-scale institutions.
