SharpLink Gaming has unveiled its intention to invest $200 million in Ether (ETH) from its corporate treasury into Consensys’ Linea network. This move marks a significant entry into the decentralized finance (DeFi) sector for the Nasdaq-listed company.

The initiative aims to leverage Linea’s zkEVM layer-2 technology to generate onchain yields and optimize the management of its ETH reserves. In a press release, the firm highlighted its goal to achieve risk-adjusted ETH-denominated returns through this strategy.

SharpLink’s deployment will be approached through institutional safeguards in collaboration with Anchorage Digital Bank, its chosen custodian. Currently, it holds roughly 859,853 ETH, valued at approximately $3.57 billion, representing about 5.6% of its overall treasury.

Moreover, the strategy includes generating yields from staking and rewards earned by validating EigenCloud’s decentralized mission verification services, alongside incentives from Linea and ether.fi, a decentralized staking protocol.

Related Developments in DeFi

Other entities, such as ETHZilla, have also begun exploring DeFi strategies for treasury management. ETHZilla is set to deploy $100 million in ETH to ether.fi, enhancing its treasury yields.

Similarly, the Ethereum Foundation has previously allocated 45,000 ETH across various DeFi platforms to bolster its treasury management.

With a growing interest in DeFi strategies from corporate and centralized entities alike, SharpLink’s initiative appears to be a timely move in the rapidly evolving blockchain landscape.