China Founders Alliance Establishes $1 Billion ETH Treasury

Chinese giants want DATCO

A new cryptocurrency investment alliance has emerged from some of Asia’s most influential blockchain companies. Founders and executives from Huobi Exchange, HashKey Capital, Fenbushi Capital, and Meitu are reportedly forming a joint fund with the goal of raising up to $1 billion — with the explicit mission of accumulating large amounts of Ethereum (ETH).

The initiative highlights the growing shift by institutions to ETH as a strategic reserve asset, especially as Ethereum plays an increasingly important role in tokenized payments infrastructure, real-world assets (RWA), and decentralized finance (DeFi).

According to people familiar with the matter, the alliance's goal is to establish a multi-phase treasury structure focused on:

• Accumulate ETH as a long-term strategic reserve asset, similar to Bitcoin treasury models pioneered by companies like MicroStrategy and Metaplanet.

• Providing on-chain liquidity for decentralized finance, staking, and restaking protocols.

• Stabilizing Asian Institutional ETH Exposure Amid Growing Western ETF Dominance

The fund is expected to launch under a regulated offshore entity, with early participation from sovereign family offices, native crypto funds and Web3 businesses.

A New Beginning for East Asia

This Ethereum-focused entity, structured as a private trust with the potential to go public, is built on the solid foundations of the quartet: Li Lin’s Huobi legacy (once valued at $3 billion, now HTX), Shen Bo’s Fenbushi (early ETH investor with a portfolio of over $100 million), Xiao Feng’s HashKey (first licensed crypto fund in Asia, $1 billion AUM), and Cai Wensheng’s Meitu (pioneer of $100 million worth of BTC/ETH purchases in 2021).

The $1 billion raise, which is targeted to close in Q1 2026, will be deployed through OTC exchanges and DeFi protocols for long-term ETH holdings, staking on Lido or Rocket Pool, and funding XRPL-related dApps—aimed at “future-proofing Asia’s ETH exposure,” according to sources close to Li.

No dilution of equity for founders; This funding combines institutional LPs (SBI, Galaxy Digital whispers) and debt instruments with sub-3% interest rates, leveraging ETH's 4-5% staking APY to deliver positive net returns. A $200 million seed trache raised 45,000 ETH at an average of $4,400, delivering $2 million in quarterly yield.

A DAO-lite model with founder veto power, ensuring consensus amid XRP's post-SEC rally. It mimics Metaplanet's 497% ETH yield but expands regionally. According to Chainalysis, Asia's 200 million crypto users are hungry for treasury exposure as the Yen and Yuan weaken 10-15% YTD.

Impact on this economic sector

If fully funded, this $1 billion initiative could mark the largest private sector ETH accumulation effort in Asia, signaling a strategic shift from speculative trading to treasury-driven asset accumulation. This mirrors how corporate treasuries began accumulating BTC in 2020–2021 — potentially laying the groundwork for an ETH-led institutional cycle.

A sustained $1 billion ETH buyout campaign could have significant market impacts, including:

• Upward pressure on ETH's mid-term valuation.

• Reduce circulating ETH as large batches are moved to cold storage or staking.

• Strengthen liquidity depth for ETH-based derivatives, restaking protocols, and RWAs.

With Hong Kong, Singapore, and Dubai positioning themselves as cryptocurrency regulatory hubs, the alliance could cement Asia’s influence in shaping Ethereum liquidity — balancing out Western dominance through the ETF market in the United States and Europe.

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