China Renaissance Holdings has been in conversation, looking for $600 million in fundraising for BNB’s new U.S.-listed treasury vehicle. The move will make the Chinese investment bank one of the most significant institutional backers of BNB, the native token of BNB Chain, the decentralized ecosystem.
The report also mentioned that YZi Labs (previously Binance Labs) will be a participant in the fundraising, with both companies planned to put in a total of $200 million as their own contribution. The round, if it comes to fruition, will be a replica of recent corporate crypto treasury trend moves, like that of DAT Strategy, the Bitcoin-focused model that has attracted billions of institutional capital this year.
China Renaissance is a Beijing-based company that is listed on the Hong Kong Stock Exchange. The company has committed $100 million to a BNB treasury strategy. The first $100 million investment made the firm the first major Hong Kong–based institution to
The fund proposal is a clear indication of rising institutional investor appetite for BNB-backed treasury strategies. The token has recorded substantial demand in light of its trade volume reaching new heights and the on-chain activities of BNB Chain apps spreading widely.
According to Bloomberg’s sources, the vehicle will be similar to publicly traded companies that hold crypto on their balance sheets. Such companies provide investors with indirect exposure to the price performance of BNB.
By holding crypto in a strategic reserve, a trend that many other institutional investors have adopted, they have embraced the digital asset diversification route, thus constituting a shift towards treating cryptocurrencies as their reserves.
The CEA Industries has recently made public its holdings of 480,000 BNB, in addition to crypto and cash assets worth a total of around $663 million. This points to the significant increase in the number of companies that are becoming part of the BNB-linked treasuries movement.
BNB was initially launched in 2017 through an ICO related to Binance. Over time, it has become a major utility token that supports smart contracts, staking, and DeFi applications on BNB Chain.
As per The Block’s price data, BNB was close to $1,313 and hence, it was up by more than 8% during the last 24 hours and was trading near a new all-time high. The token’s surge comes after a very unstable weekend for the crypto market in general, and as such, it is a positive sign of renewed investor confidence in high-cap altcoins.
