Revamping Cryptocurrency Treasury
Jiuzi Holdings is set to revamp its substantial cryptocurrency treasury, valued in the billions, by transforming its passive asset management strategy into one that actively generates revenue through innovative blockchain technologies. Announced on October 20, the company, which is publicly traded on Nasdaq, has committed to a strategic partnership with BitFi, a notable crypto platform.
Strategic Partnership with BitFi
Through this alliance, Jiuzi gains entry to BitFi’s extensive ecosystem, which boasts wrapped Bitcoin assets totaling $2.75 billion, including assets like WBTC and BTCB. The initial phase of collaboration involves Jiuzi making a significant capital infusion into BitFi’s multi-chain strategies focusing on staking and arbitrage. As the partnership progresses, plans are in place to increase these financial commitments.
Joint Committee and Yield Products
Both companies will establish a joint committee that will concentrate on crafting structured yield products and navigating the compliant tokenization of real-world assets. This initiative marks a pivotal shift for Jiuzi as it moves away from mere cryptocurrency holding to actively engaging as a Bitcoin financial services entity.
CEO’s Vision and Compliance Commitment
Li Tao, CEO of Jiuzi Holdings, noted that this partnership signifies a vital advancement in their Web3 infrastructure efforts. By leveraging BitFi’s global BTC liquidity network, Jiuzi aims to merge the rigor of traditional finance with the dynamic nature of blockchain innovation, ultimately creating unique value for its clients.
A crucial aspect of this collaboration is its commitment to conforming with Nasdaq’s listing standards and U.S. securities regulations, underlining a concerted effort to operate within established compliance frameworks while exploring decentralized revenue generation models. This focus on adherence to regulatory measures is increasingly important as publicly traded companies begin to navigate the confluence of traditional finance and emerging crypto mechanisms.
Previous Initiatives
The announcement follows Jiuzi’s prior September disclosure regarding a $1 billion allocation of its digital asset treasury, which was to be diversified across Bitcoin, Ether, and BNB. This previous initiative introduced a more structured approach to crypto asset management and the formation of a designated risk committee, overseen by CFO Huijie Gao, to enhance investment policy and compliance.
