Norwegian Firm Allocates $1.2 Billion to Bitcoin Treasury

Corporations are increasingly viewing Bitcoin as a valuable addition to their balance sheets, with both publicly traded firms and private companies joining the movement. A Norwegian deep-sea mining company, Green Minerals AS, has announced plans to allocate up to $1.2 billion to its Bitcoin treasury. This strategy is part of the company's broader ambitions to incorporate blockchain technology into its operations and diversify its assets from fiat currencies.

This trend is not limited to Norway. Earlier this month, Tether and Bitfinex moved $3.9 billion worth of Bitcoin to Twenty One Capital, a new company backed by SoftBank and Cantor Fitzgerald. Additionally, crypto entrepreneur Anthony Pompliano has launched a new Bitcoin financial services firm, ProCap BTC, which announced plans to buy up to $1 billion worth of BTC. These moves highlight the growing institutional appetite for digital assets and the race to accumulate Bitcoin.

As Bitcoin accumulation intensifies, stablecoins are emerging as a key driver of crypto adoption. The United States is edging closer to passing landmark stablecoin legislation, while South Korea is pushing banks to issue won-backed stablecoins. The rise of yield-bearing stablecoins, described by one venture executive as an “inevitability,” appears to be on the horizon. This shift is driven by the convenience and low-risk yield that stablecoins offer compared to traditional bank savings and money market accounts.

Crypto venture firm CoinFund has backed DeFi protocol Veda in an $18 million raise to support the expansion of its vault platform, which enables issuers to create crosschain yield products like yield-bearing stable assets. According to CoinFund managing partner David Pakman, the natural next step for wealth onchain is to earn yield and make assets productive. Although the US banking lobby is reportedly concerned about the impact of yield-bearing stablecoins, Pakman described them as an “inevitability” since they offer a more convenient way of earning low-risk yield on fiat.

In South Korea, eight major banks are developing a won-backed stablecoin in an attempt to curb US dollar dominance in the country. The stablecoin rollout could begin later this year or early next year, with the Bank of Korea’s deputy governor, Ryoo Sangdai, advocating for regulated financial institutions to be the primary issuers of stablecoins. The aim is to establish a safety net, considering the potential for market disruption or consumer harm. This move is part of a broader trend of stablecoin adoption, with the market currently valued at $239 billion, according to industry data. However, 99% of that value is tied to the US dollar, indicating a significant opportunity for diversification.