Ethereum Foundation sends 50,000 ETH to new multisig wallet amid DeFi plans

The Ethereum Foundation, the non-profit organization supporting the development of the Ethereum blockchain network, has set up a multisig wallet as it looks to participate in the decentralized finance ecosystem.

According to a post on X hww.eth, which was reposted by the Ethereum Foundation, the new multisig wallet will enable the organization to engage in the DeFi ecosystem. The foundation has initiated a transfer of 50,000 Ethereum (ETH) to the wallet, a 3-of-5 multisig managed via the on-chain asset custody provider Safe, formerly known as Safe Gnosis.

The Ethereum Foundation noted that the 50,000 ETH test transfer is now live through the DeFi protocol Aave, with plans to gradually add more funds to this multisig wallet.

The announcement comes in the wake of Ethereum co-founder Vitalik Buterin’s remarks about the foundation exploring new staking options. Notably, this move follows renewed criticism of the Ethereum Foundation for its continued offloading of ETH holdings.

With Ethereum price constrained amid Bitcoin (BTC)’s push to a new all-time high above $109k, the sell-off pressure for ETH that comes from the foundation’s offloading has not sat well with most holders. This criticism has given rise to the suggestion that the EF can earn from its ETH holdings to cover cash needs – in the process supporting Ethereum’s growth and security.

Buterin shared on X that the foundation had explored staking options as part of the plan to avoid further ETH sales. According to him, EF had so far kept off staking due to regulatory concerns and the issues of having to choose sides in the event of a network hard fork.