Jack Ma's financial company invests $44 million to purchase Ethereum, expanding into Web3

Yunfeng Financial Group Limited, a Hong Kong-listed company co-founded by Alibaba founder Jack Ma (hereinafter referred to as "Yunfeng Financial"), recently announced the purchase of approximately 10,000 Ethereum (ETH) tokens for 44 million USD, at a price close to 4,316 USD per token. This strategic acquisition marks a significant step for Yunfeng Financial into the cryptocurrency market amid a gradually opening regulatory environment in China, aiming to support Web3 services and the tokenization of real-world assets (RWA).

Strategic Investment in Ethereum, Focusing on Web3 and Fintech

Yunfeng Financial disclosed this transaction through a voluntary announcement submitted to the Hong Kong Stock Exchange. The announcement shows that the board approved the purchase of Ethereum as a strategic reserve asset using the company's internal cash reserves, without the need for external financing. Executive Director and Acting CEO Huang Xin stated that this move aligns with the company's strategic roadmap released in July 2024, with a focus on Web3 technology, real-world asset tokenization, digital currencies, ESG net-zero assets, and artificial intelligence.

The acquired Ethereum will be reflected in Yunfeng Financial's financial statements as an investment project to support blockchain-based service innovation. The company plans to explore the application of Ethereum in insurance business while developing innovative scenarios compatible with Web3 technology, further enhancing customer service experience and economic autonomy. Management believes that the allocation of digital assets optimizes the company's fund asset structure while reducing reliance on traditional currencies.

A New Chapter in Jack Ma's Financial Empire

Yunfeng Financial was co-founded by Jack Ma and David Yu in 2010. It is a private equity company providing brokerage, asset management, insurance, and fintech solutions for the Asian market. The timing of this cryptocurrency investment reflects China's changing attitude toward digital assets and blockchain technology. Although China still maintains strict regulation on cryptocurrency trading, authorities are increasingly recognizing the potential of blockchain technology in financial services and digital infrastructure construction, such as the application of stablecoins.

Yunfeng Financial's strategic layout demonstrates its ambition in the integration of finance and technology. By investing in Ethereum, the company not only promotes the tokenization of real-world assets but also plans to develop Web3 customer services to enhance competitiveness in the fintech sector. This strategic approach forms a sharp contrast with Jack Ma's previous technology-driven model directly leading Alibaba and Ant Group, while also reflecting lessons learned from past regulatory challenges.

Innovative Exploration of Chinese Financial Enterprises under Regulatory Environment

Yunfeng Financial's acquisition of Ethereum makes it another significant global enterprise investing in cryptocurrency, following SharpLink Gaming and BIT Mining. However, under the current regulatory restrictions in China, Yunfeng Financial has become the most high-profile financial services company to make such an investment. This move indicates that Chinese entrepreneurs are adapting to the evolving regulatory environment and seeking innovative opportunities through the strategic layout of established financial institutions.

This acquisition not only demonstrates Yunfeng Financial's ambition in the digital asset sector but also marks the growing interest of China's financial industry in blockchain and cryptocurrencies. Against the backdrop of the global trend of corporate crypto finance, Yunfeng Financial's move provides an important reference for other Chinese financial companies exploring digital asset investments.

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