As BNB hits new highs, a major Chinese investment bank is reportedly in talks to raise $600 million for a new US-based digital asset treasury (DAT) company focused on investing in altcoins.
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Chinese investors plan $600 million fundraiser
On Monday, Bloomberg reported that Beijing-based Chinese investment bank China Renaissance Holdings plans to raise funds for a new BNB-based public vehicle backed by YZi Labs Management Ltd.
China Renaissance aims to raise $600 million to create a publicly traded DAT company in the U.S. that will specialize in accumulating BNB, the news agency said. YZi Labs, formerly known as Binance Labs, reportedly plans to invest $200 million in the deal with a Hong Kong-listed bank.
Sources told Bloomberg that YZi Labs held a dinner in early October with executives who were bullish on BNB. China Renaissance sent representatives to the event, along with other companies reportedly involved in establishing the BNB hoarding company.
Notably, the two companies recently announced a strategic partnership to “advance the development of BNB and the BNB Chain ecosystem,” and this partnership has been gaining momentum in recent months.
In August, China Renaissance announced that it had entered into a strategic cooperation agreement with YZi Labs, with the objective of “forming an organizational pathway for digital asset deployment, from compliant product development to enterprise-level RWA applications” and creating “meaningful synergies between the two ecosystems.”
The investment bank also revealed plans to invest around $100 million in BNB as part of its own holdings, making it the first Hong Kong-listed company to allocate the cryptocurrency as its own digital asset.
BNB Financial Company Trends
The Chinese investment bank's efforts follow a growing trend of launching cryptocurrency-based DAT companies. This trend has led to the creation of dozens of new financial companies in the past few months, with billions of dollars invested in these companies.
Last week, CEA Industries, the world's largest BNB treasury company, announced that its treasury holdings totaled $663 million in cash and crypto assets.
As part of its goal to own 1% of the altcoin's total token supply by the end of 2025, the Nasdaq-listed company currently holds a total of 480,000 BNB tokens worth a total of $585.5 million as of October 6th.
In late September, Kazakhstan announced the launch of the Alem Crypto Fund, the first crypto reserve fund aimed at long-term investments in digital assets, with Binance Kazakhstan as a strategic partner.
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As part of the partnership, Alem Crypto Fund has made its first investment in BNB, underscoring its “faith in the Binance ecosystem” and embarking on “a new chapter in the institutional recognition of cryptocurrencies in Kazakhstan.”
Amid the surge in BNB-based funds, the altcoin posted a massive 36% rally last month, breaking the $1,000 barrier and hitting multiple all-time highs (ATHs), reaching a recent high of $1,370 on October 13th.
At the time of writing, BNB is trading at $1,281, up 4% on a weekly basis.
Featured image from Unsplash.com, chart from TradingView.com
