Catenaa, Sunday, October 12, 2025-The Ethereum Foundation has announced it will convert 1,000 ETH, worth roughly $4.5 million, into stablecoins to support research and development, grants, and donations, the organization said in a social media post.
The move follows a similar swap last month when the foundation converted 10,000 ETH, valued at $43.6 million at the time, to stablecoins on centralized exchanges.
The foundation plans to use CoWSwap’s time-weighted average price feature to execute the swap, which it said will fund ongoing initiatives and demonstrate the utility of decentralized finance.
The organization emphasized that the transaction aligns with its treasury management policy established in June, which outlines asset-liability management, grant allocation, and liquidity strategies while adhering to Ethereum’s core principles.
Some members of the Ethereum community criticized the plan, urging the foundation to consider alternative methods such as borrowing against its ETH via DeFi lending platforms or negotiating over-the-counter deals with other digital asset treasuries.
The foundation noted that these conversions are part of routine funding to maintain operations after previously slowing or pausing certain grant programs to manage its burn rate.
The Ethereum Foundation’s treasury strategy aims to balance risk, liquidity, and duration while ensuring continued support for Ethereum’s ecosystem growth.
By converting ETH to stablecoins, the foundation maintains operational flexibility while securing funds for research, grants, and donations critical to blockchain development and ecosystem sustainability.
