Malaysia-based Bionexus Gene Lab announced on March 5 that it has approved a financial strategy that prioritizes Ethereum (ETH) over Bitcoin (BTC).
The company said the decision was driven by Ethereum's recent inclusion in the US crypto strategic reserve and “broader utility as a programmable financial platform.”
Bionexus said that an extensive internal analysis of the board has identified institutional adoption of Ethereum, the potential for staking, and control of financial infrastructure as key factors supporting the integration of the Ministry of Finance.
As of September 30, 2024, the company had a market capitalization of $6 million, revenue of $2.6 million, and net profit of $1.3 million. It aims to become the first NASDAQ registered company to adopt the Ethereum monopoly financial strategy, although it does not specify the amount of investment.
Sam Tan, CEO of Bionexus, said:
“Ethereum offers greater liquidity, utilities and stability compared to other digital assets, positioning BGLC as a leader in blockchain-integrated corporate finance. The leadership of Wyoming's regulatory authorities further examines our decisions to promote an environment in which blockchain businesses can thrive.”
Bionexus also cited Wyoming's blockchain-friendly regulatory environment, highlighting “Wyoming's stable token law” as an additional factor in its decision.
Wyoming's stable token law passed in March 2023 allows Wyoming's stable token committee to issue Wyoming's stable tokens (WYSTs) that can be exchanged for US dollars.
Staking and Stub Coin Rails
in White Paper Title “ETH Strategy” Bionexus argued that Ethereum contrasts with its primary use of Bitcoin by providing a staking mechanism that generates additional yields of 3% to 5% for businesses each year.
The document highlighted staking properties as an important factor in Bionexus' decision to prioritize ETH by the Treasury. Ethereum's important role in global finance.
We noted that Ethereum serves as the payment tier for Tether USD (USDT), USD Coin (USDC), and other Stablecoins, processing trillions of dollars of transactions each year.
The report added that this infrastructure will enable cost-effective and efficient cross-border payments to position Ethereum as a central component of the digital economy.
Financial infrastructure for institutions
Other key differentiators include the role of Ethereum in enterprise blockchain solutions, financial settlements and smart contract capabilities, but Bitcoin is primarily used as a financial asset.
Ethereum's financial solutions mentioned in the white paper are strengthening financial assets tokenization, decentralized payments, and regulatory compliance, enhancing its usefulness in institutional finance.
As a result, banks, investment companies and publicly available companies are adopting Ethereum, which exhibits mainstream financial approvals. The company also hopes to accelerate adoption of Ethereum Exchange-Traded Funds (ETFs).
Additionally, the white paper notes that by integrating ETH, Bionexus will align with the continuous evolution of corporate finance and leverage blockchain technology to enhance financial efficiency and liquidity management.
The whitepaper expressed optimism about future upgrades for Ethereum, citing the Pectra update to be released in April. Pectra enhances wallet capabilities, validator operations, network performance, smart contract deployment, and account abstraction.
