DDC Enterprise Limited (DDC), has signed a non-binding memorandum of understanding (MoU) with Animoca Brands to formulate strategies that will maximise the yield on Bitcoin assets. Through the MoU, Animoca Brands will invest up to US$100 million in Bitcoin ($BTC), which will be held in custody by DDC to implement structured yield-maximisation strategies. The new initiative supports a bigger vision by DDC to enhance its presence in the corporate Bitcoin treasury market.
The alliance illustrates an emerging trend of traditional public companies attempting to bring digital assets into traditional finance. Through this approach, DDC will also strive to maximize the performance and the value of Bitcoin investments and maintain risk management. The agreement will be a stepping stone towards future engagements and is intended to be a possible prototype of other similar work in the corporate environment.
Incorporation of Bitcoin Visionary Council and Executive Appointment
Yat Siu, Co-Founder and Executive Chairman of Animoca Brands, will also become the new Co-Chairman of the Bitcoin Visionary Council formed by DDC as part of the strategic alliance. The Council is expected to advise and monitor the Bitcoin treasury strategy of the company and assist in developing long-term digital asset programs.
The appointment of Siu aims to introduce industry knowledge and advisory powers to augment digital asset operations within DDC. His role will entail coordinating DDC’s treasury plans so that they are in tandem with current market practices and flexible to technology changes. The move also indicates that DDC is keen on developing an institutional structure for handling Bitcoin assets.
Digital Assets Corporate Integration
DDC has designated Bitcoin as an important reserve asset in its company framework, which indicates a change in attitude towards the use of digital assets in the marketplace. Simultaneously with the work of the enterprise in the sphere of the Asian food market, the firm examines the possibility of using blockchain technology in its financial planning and resource management.
The partnership with Animoca Brands will offer the two companies working opportunities to learn in terms of operations and financial instruments using blockchain prospects to better advantage.
