Digital Asset Eyes $300 Million Raise at $2 Billion Valuation as Tokenization Demand Grows

Blockchain infrastructure firm Digital Asset is preparing a new funding round at an estimated ‘$2 billion valuation’, a move that underscores sustained ‘institutional demand’ for tokenization rails even as crypto markets digest large on-chain transfers and Ethereum’s weakening performance versus Bitcoin.

Bloomberg, cited by Wu Blockchain, reported that Andreessen Horowitz’s a16z crypto is expected to lead roughly ‘$300 million’ in fresh investment into Digital Asset. The company is best known as the developer behind the Canton Network, a privacy-enabled blockchain designed for regulated financial institutions and backed by major market participants including DRW and Citadel Securities, alongside multiple Wall Street banks.

Digital Asset previously raised $50 million in 2025 in a round that included BNY Mellon and Nasdaq, positioning the firm as one of the higher-profile infrastructure plays building compliant settlement and data-sharing layers for capital markets. A new round at a step-up valuation would signal investor conviction that tokenization—particularly of traditional assets—remains on a multi-year adoption curve despite bouts of cyclical risk-off sentiment in liquid crypto tokens.

The fundraising news landed alongside a series of large Ethereum (ETH) transfers tracked by Whale Alert, activity that traders often monitor for clues about directional positioning. One anonymous wallet moved 225,627 ETH—worth about $529.8 million at the time of transfer—to Binance, a flow that can be interpreted as potential ‘sell-side supply’ given it reached an exchange, though no confirmed selling was reported. In a separate transaction, 300 million Tether (USDT), or roughly $300 million, was transferred from Binance to an unidentified wallet on Ethereum, with the destination and purpose undisclosed.

Additional ETH movements included 70,330 ETH (about $165.1 million), 56,970 ETH (about $133.7 million), and 48,550 ETH (about $113.9 million) shifting between anonymous wallets. Because these transfers did not visibly route into exchanges, they are harder to tie directly to near-term selling pressure, and may reflect internal treasury management, over-the-counter settlement, or custody reorganization.

Market context has been particularly sensitive for Ethereum, as the ETH/BTC ratio has fallen more than 35% over the past year, according to Odaily. The report noted ETH/BTC has repeatedly failed to break a long-term downtrend in place since 2022, with selling pressure reappearing around an area where a 0.382 Fibonacci retracement level and the 50-month moving average converged. The pair has also slipped below a support zone near the 20-month moving average, with technical models cited in the report pointing to a potential next major support around 0.0176 BTC—roughly 40% below current levels if downside momentum persists.

On-chain positioning appears to reinforce the relative weakness narrative. Binance’s ETH holdings reportedly climbed to roughly 3.62 million ETH in May, accounting for about 24.6% of total exchange ETH reserves, while overall exchange Bitcoin (BTC) balances declined—interpreted by some analysts as a sign of stronger holding behavior in BTC than in ETH. Observers argue that this supply-and-demand divergence, combined with Bitcoin’s continuing pull from corporate treasuries and institutional allocations, has kept ETH on the defensive as its earlier ‘ultra-sound money’ narrative has faded in influence.

In corporate crypto holdings, Strategy (MSTR) CEO Phong Le said in a CNBC interview that the company would consider selling Bitcoin only under specific conditions. Le emphasized a numbers-first approach, suggesting sales could occur if they were advantageous to ‘BTC per share’ relative to issuing new equity, including potential sales to fund dividends on STRC perpetual preferred shares. He also cited ‘tax optimization’—such as realizing or deferring gains and losses—as another scenario in which sales could be considered.

The comments mark a nuanced shift for Strategy, which has long promoted a strong preference for holding BTC. The updated framing suggests the firm may increasingly manage its treasury with greater balance-sheet flexibility, even as it continues to position Bitcoin as a core corporate asset.

Elsewhere in the market, meme coins in the BNB Chain (BSC) ecosystem posted gains, according to GMGN data cited by Odaily. ‘Binance Life’ rose 22.78% over 24 hours to a reported market capitalization of $465 million, while ‘WotamaRiler’ climbed 13.8% to roughly $11.7 million. The moves highlighted the sector’s ongoing reliance on ‘liquidity’ and short-term sentiment, dynamics that can amplify volatility across smaller-cap tokens.

Bitcoin-focused social media commentary also turned more optimistic, with the account Bitcoin Historian claiming BTC was showing an upside breakout pattern, though no specific levels or volume metrics were provided. For now, traders appear to be weighing the competing signals: fresh ‘institutional’ funding momentum in blockchain infrastructure, heightened whale activity in ETH, and a market still prone to rapid shifts in risk appetite.