Ethereum co-founder and Consensys CEO Joe Lubin revealed on Tuesday that his company is currently in discussions with “sovereign wealth funds and major government banks” from a “very large” country regarding potential infrastructure development on Ethereum. But could this also mean those entities will buy ETH?
Speaking on the latest episode of Fomo Hour by Rug Radio, Lubin expressed bullish views on crypto’s second-largest asset, suggesting that a new decentralized supercycle, powered by Ethereum, may soon be underway.
(Disclosure: Rug Radio and Decrypt share a parent company, DASTAN. Consensys is one of 22 investors in Decrypt, which remains editorially independent.)
“There’s a structural fatigue in the financial system. It’s breaking down,” Lubin said.
“We’re at the end of a supercycle, essentially—driven by financial excess, the financialization of America, and the erosion of the middle class. It’s all leading to the end of this cycle.”
According to Lubin, decentralized protocols offer an answer: the foundation for a new, global financial system.
Sovereign-Grade Ethereum Infrastructure?
Lubin added that Consensys has been actively engaging with sovereign banks and national investment funds from an undisclosed country interested in Ethereum’s ecosystem.
“We’re speaking with major sovereign wealth funds and national banks in a specific country that are asking: ‘How do we build infrastructure inside the Ethereum ecosystem?’” Lubin said.
This potential path forward may involve building directly on Ethereum L1, or launching custom L2 infrastructure tailored to their needs.
Would such a national commitment also involve large-scale ETH accumulation? It seems plausible—although ETH has largely been overlooked as a treasury reserve asset until recently.
A New Ethereum-Focused Treasury Model
Last week, Lubin and Consensys made headlines by leading a high-profile investment into publicly traded SharpLink Gaming, raising $425 million to kickstart a new Ethereum-focused investment fund. Lubin now serves as Chairman of SharpLink’s Board.
However, SharpLink’s treasury won’t mirror the Bitcoin-hoarding strategy popularized by Michael Saylor’s MicroStrategy, which simply bought and held BTC to increase per-share value through Bitcoin exposure.
Instead, Lubin says SharpLink will take an active approach to Ethereum:
Utilizing staking, restaking, and conservatively risk-managed DeFi strategies to generate real yield on ETH holdings.
Following the announcement, SharpLink’s stock ($SBET) showed significant volatility—dropping sharply Monday, rebounding Tuesday morning, and sliding again by the close. Still, the stock is up 922% over the past month.
Lubin: ETH Is the “Middle Child” — For Now
Despite the Ethereum ecosystem’s recent turbulence and underwhelming price performance, Lubin remains confident in its long-term trajectory.
He described Ethereum as the “middle child” compared to Bitcoin and Solana, both of which, he said, have clearer messaging and value propositions.
“Ethereum, the middle child, is sitting there planning for the future,” said Lubin.
“We’re trying to do everything right. We’re building massive infrastructure for our broadband moment.”
He acknowledged that Ether’s price has lagged, contributing to negative sentiment—but believes this is temporary.
Looking ahead, Lubin believes Ethereum could eventually surpass Bitcoin, thanks to its ability to create and underpin a digital economy.
“Ether is somewhere between a computer, electricity, energy, oil… or my favorite comparison: the most trust-rich commodity on the planet,” Lubin said.
He praised Satoshi Nakamoto’s invention of decentralized trust, calling it “the deepest innovation,” but sees ETH as evolving further.
“Bitcoin represents top-tier trust,” he said.
“But I see Ether now as the gold standard of trust—or high-octane trust.
So… is it more valuable than Bitcoin? It just might be.”
