In recent news, Ryde, a Singapore-based carpool and ride-sharing platform, which reportedly already accepts Bitcoin for customer payments, is embracing crypto assets as an investment of portions of its treasury.
Ryde Group, a Singapore-based ride-sharing and carpool platform, similar to Uber or Lyft, said on Wednesday that it has adopted a crypto treasury strategy for its corporate reserve.
The company said it will invest a portion of its corporate reserves in Bitcoin, Ether, and Solana, with specific allocations and purchase timing to be determined by Ryde's governance team, according to its announcement.
Ryde cited the “evolving macroeconomic environment” as the reason for adopting a crypto treasury and said that the option to invest portions of its treasury in digital assets gives the company greater flexibility in managing its treasury operations. — Cointelegraph report
The Big Picture
A lot of people may view digital assets treasuries as no big deal, especially since the announcement of new companies embracing it doesn't immediately lead to positive price performance of said assets, but there are more important takeaways from the increasing number of companies shifting focus to digital assets for their treasury strategies.
Of course, with each companies, this is unique, so when it comes to Ryde, here's a couple of things to worth paying attention to as the company goes from accepting Bitcoin payments to embracing a multi-assets crypto treasury strategy.
Capital efficiency
From the official press release on newswire, Ryde frames the move as "improving capital efficiency" and whilst this might go over some people's heads simply because numbers don't go up, it's indicative of a major shift in perspective of traditional companies when it comes to crypto assets.
Crypto is being framed less as speculation, more as: alternative reserve asset and hedge against macro uncertainty. This is a cross-industry adoption signal that digital assets are increasingly considered legitimate store of value.
In today's modern world, crypto assets are regarded as an important asset class for balance sheet resilience. The institutionalization of crypto treasury management is happening in real time where each purchase isn't some opportunistic buying but structured governance and long-term strategic move.
Multi-asset strategies signals acceptance
We are watching as the acceptance of the legitimacy of the entire crypto asset market as a industry of diverse valuable ecosystem is taking form.
With each new companies embracing multiple assets treasury strategies, and not just Bitcoin—even though that hurts the BTC maximalists, is increased legitimacy reputation for crypto. Not because corporate or traditional companies acceptance is in itself the measure of legitimacy, but because it's reflective of acceptance of defeat because history shows that TradFi has been against crypto and recent inflows would prove that it's been determined that there's no other option amongst traditional players.
Balance sheet allocations for digital assets brings structural demand for crypto, overtime, that could lead to reduced volatile of these assets due to deeper liquidity and less speculative trading, but more importantly, increased integration with TradFi systems, which is a crucial step towards bringing all of finance on-chain, to achieve a future where finance is fundamental decentralized!