Ethereum Co-Founder Joe Lubin on Treasury Strategies and Institutional Engagement

Ethereum co-founder Joe Lubin recently shed light on his firm Consensys's strategic shift towards building an Ethereum treasury, influenced by Michael Saylor. Lubin also revealed ongoing discussions with major sovereign wealth funds and banks from a significant country, exploring infrastructure development within the Ethereum ecosystem. This signals a growing institutional interest in Ethereum as a foundational technology and a potential treasury asset.

Key Takeaways

• Joe Lubin, co-founder of Ethereum and CEO of Consensys, was inspired by Michael Saylor to establish a firm focused on an Ethereum treasury strategy.

• Consensys is in talks with major sovereign wealth funds and banks from a "very big" country regarding building infrastructure on Ethereum.

• Lubin believes decentralized protocols are crucial for a new global financial system, addressing structural fatigue in the current system.

• SharpLink Gaming, with Lubin as Chairman, launched a $425 million Ethereum treasury, aiming for proactive use of ETH through staking, restaking, and DeFi.

• Lubin views Ether as the "gold standard in trust" and a potential "most valuable trust commodity on the planet," suggesting it could surpass Bitcoin in value.

The Saylor Influence on Ethereum Treasury

Joe Lubin, a long-standing figure in the crypto space, disclosed that a dinner conversation with Michael Saylor, a prominent advocate for digital asset stockpiling, was a catalyst for Consensys's venture into an Ethereum treasury. Lubin recounted, "I was at a dinner with Michael Saylor, I did a little bit of research, I started talking to my colleagues about how cool it could be." This interaction prompted an internal deep dive at Consensys, leading to the conclusion that an Ethereum treasury strategy presented no significant risks.

Institutional Interest and Global Financial Shift

Lubin revealed that Consensys is actively engaging with major sovereign wealth funds and banks in a substantial, unnamed country. These discussions center on how to build robust infrastructure within the Ethereum ecosystem, potentially involving both Ethereum layer-1 and their own layer-2 constructs. Lubin emphasized his belief that decentralized protocols are the answer to establishing a new global financial system, citing structural fatigue and the end of a financial supercycle.

SharpLink Gaming's Ethereum Treasury Strategy

Further demonstrating the evolving treasury approach, Lubin and Consensys led a $425 million investment in SharpLink Gaming. This investment is earmarked for establishing an Ethereum treasury, with Lubin now serving as Chairman of SharpLink's board. Unlike Michael Saylor's Bitcoin-centric strategy of accumulation, SharpLink's approach will be proactive, leveraging Ethereum's capabilities for yield generation through "staking, restaking, and DeFi at prudent risk levels."

Ethereum's Future and Value Proposition

Despite past price underperformance, Lubin remains highly optimistic about Ethereum. He described Ethereum as the "middle child" compared to Bitcoin and Solana, which have clearer narratives. However, he asserted that "things were going great in the Ethereum ecosystem" behind the scenes. Lubin envisions Ether as more than just a digital currency, likening it to a "world computer, electricity, energy, [or] oil." He ultimately sees Ether as the "most valuable trust commodity on the planet," suggesting its potential to surpass Bitcoin due to its unique role in decentralized trust.

Sources

• Ethereum's Lubin Credits Michael Saylor for Crypto Treasury Firm Nudge, Bloomberg.

• Ethereum Co-Founder in Talks With 'Major Sovereign Wealth Funds'—Will They Buy ETH?, Decrypt.