Ethereum News Today: Standard Chartered: Corporate Ethereum Holdings to Surge 10x to 10% on Staking Yields DeFi Demand

Ethereum’s institutional adoption is accelerating, with corporate treasury holdings potentially rising to 10% of its total supply from the current 1% level, according to Standard Chartered. The bank attributes this projected tenfold increase to growing institutional interest in Ethereum’s staking yields and decentralized finance (DeFi) capabilities, which differentiate it from Bitcoin. Corporate entities, including firms like BitMine Immersion Technologies and SharpLink Gaming, are increasingly allocating Ethereum as a strategic reserve asset, leveraging staking to generate passive income while balancing sheet exposure [1][5][7].

The shift reflects a broader reallocation of institutional capital, driven by Ethereum’s structural advantages. Staking rewards currently offer annual yields of approximately 3%, creating a compelling case for firms seeking yield generation in otherwise low-return environments [8]. This utility, combined with Ethereum’s role in DeFi applications, positions it as a more dynamic treasury asset compared to Bitcoin, which lacks such functionalities. The ETH/BTC ratio, a gauge of relative performance, surged from 0.018 in April to 0.032 by July, underscoring Ethereum’s outperformance amid ETF inflows and corporate buying [3][8].

Standard Chartered’s analysis highlights a surge in corporate ETH accumulation, with some entities adopting aggressive strategies to capitalize on Ethereum’s deflationary mechanisms and hedge against market volatility. The bank notes that this trend is beginning to rival the pace of inflows into traditional reserve assets like gold or real estate, signaling a structural shift in institutional portfolio allocation [7][12]. While the report does not explicitly tie the projected 10% ownership to price targets, it reinforces confidence in Ethereum’s long-term utility, particularly with post-Shanghai hard fork upgrades enhancing its infrastructure [15].

Despite the optimism, regulatory uncertainties remain unaddressed in the report. Historical patterns show that policy changes in major markets could either accelerate or hinder institutional adoption. However, the current trajectory suggests that Ethereum’s role in corporate treasuries is likely to expand, especially in jurisdictions where direct crypto access is limited. This regulatory arbitrage may drive demand for compliant exposure to Ethereum, further entrenching its position as a core portfolio component for diversified investors [14].

The market response to these developments has been mixed. While proponents highlight the potential for reduced short-term liquidity and amplified price volatility due to increased institutional holding, critics caution against overreliance on Ethereum as a reserve asset without addressing systemic risks. Nevertheless, Standard Chartered’s forecast underscores a significant inflection point for Ethereum, as institutional players increasingly integrate digital assets into their strategic frameworks.

Sources:

[1] "Ether Treasury Companies Could Own 10% of Coin One Day, Says Standard Chartered" (https://www.cnbc.com/2025/07/29/ether-treasury-companies-could-own-10percent-of-coin-one-day-says-standard-chartered.html)

[2] "Ether Treasury Companies to Eventually Own 10% of Supply" (https://finance.yahoo.com/news/ether-treasury-companies-eventually-own-113702535.html)

[3] "StanChart Predicts Corporates Will Control 10% of Ethereum Supply Over Time" (https://cryptoslate.com/stanchart-predicts-corporates-will-control-10-of-ethereum-supply-over-time/)

[4] "Corporations Have Acquired 1% of Ether Supply: Standard Chartered" (https://cointelegraph.com/news/corporations-acquired-1-ether-supply-standard-chartered)

[5] "Standard Chartered Forecasts Ethereum Treasury Firms to Acquire Up to 10% of $ETH Supply" (https://www.ainvest.com/news/standard-chartered-forecasts-ethereum-treasury-firms-acquire-10-eth-supply-2507/)

[6] "Ethereum Treasuries Could Soon Own 10% of All ETH" (https://www.benzinga.com/crypto/cryptocurrency/25/07/46699508/ethereum-treasuries-could-soon-own-10-of-all-eth-standard-chartered)

[7] "Corporate Ethereum Treasuries Could Hit 10% of Supply, Says Standard Chartered" (https://coinpedia.org/news/corporate-ethereum-treasures-could-hit-10-of-supply-says-standard-chartered/amp/)

[8] "Ether Treasury Companies Are 'Just Getting Started', Could Ultimately Own 10% of All ETH" (https://zycrypto.com/ether-treasury-companies-are-just-getting-started-could-ultimately-own-10-of-all-eth-standard-chartered/)

[9] "On-Chain Data Showed That Whales Are Aggressively Accumulating ETH" (https://www.mitrade.com/insights/crypto-analysis/bitcoin/cryptopolitan-BTCUSD-202507301605)