Ethereum Co-Founder Lubin: ETH Treasuries Key to Decentralization

Ethereum co-founder Joseph Lubin has underscored the importance of corporate treasuries in the growth and stability of the Ethereum ecosystem. During an interview, Lubin emphasized that ETH treasuries are vital for promoting decentralization and maintaining market equilibrium. He believes that the integration of ETH into corporate treasuries will expedite the ecosystem's expansion and reinforce Ethereum's role as a fundamental currency for digital commerce and finance.

Lubin's perspective is bolstered by recent strategic initiatives from various companies. SharpLink Gaming, for example, has substantially increased its ETH holdings, establishing itself as a pioneer in the institutional adoption of Ethereum. Lubin, who serves as the chairman of SharpLink, described Ethereum as a strategic currency rather than a speculative asset. This move aligns SharpLink with the emerging digital economy and demonstrates the company's long-term confidence in Ethereum's value.

The trend of corporate adoption of Ethereum extends beyond SharpLink. Lubin mentioned that a large amount of Ether is in circulation, but there is insufficient activity to utilize it. He cited this as the reason he is involved in building the Ethereum treasury company SharpLink Gaming. Lubin said Ether treasuries are “a great business to run.” He also claimed that “it’s going to be critical to enable the supply-demand dynamics of Ether to right-size as we build more and more applications.”

Lubin said SharpLink is focused on “telling the Ethereum story” in a way that appeals to Wall Street, who he said “pays attention to being able to make money.” Lubin said that he expects both Bitcoin and Ether to “continue to rise over the next years and decades” as the world gradually shifts to increasing decentralization. According to Lubin, treasuries will generate interest and scarcity around these assets by accumulating and being expected to keep collecting more. “We’re able to acquire tens of millions of dollars in Ether a day,” he said.

Lubin said that after years of building infrastructure, the ecosystem is mature enough to host Web3. “It’s very usable right now,” he said, adding: “So Ethereum is scalable enough, affordable enough, legal enough in the United States.” Lubin also claimed that Ethereum’s development had been stifled by former US Securities and Exchange Commission Chair Gary Gensler, who he says made it “really unattractive to use tokens or issue tokens or build applications in our ecosystem.” “That is all behind us,” he added.

The comments follow Paul Atkins being sworn in as the 34th chair of the SEC in late April. Earlier this month, Atkins said that the SEC now sees tokenization as an “innovation” to be encouraged in the marketplace. Lubin's emphasis on ETH treasuries as a catalyst for decentralization and market stability is a significant development for the Ethereum ecosystem. As more companies adopt ETH as a treasury asset, the ecosystem gains stability and credibility, paving the way for further innovation and growth. This trend is part of a larger institutional shift towards digital assets, reflecting a growing recognition of their potential to reshape the financial landscape.