Ethereum Foundation Converts 1,000 ETH to Stablecoins to Support Growth

Highlights:

• Ethereum Foundation converted 1,000 ETH worth $4.5M into stablecoins via CoWSwap.
• EF paused open grant submissions to focus on key network priorities.
• Ethereum maintains 61%–68% dominance in the DeFi sector despite competition.

The Ethereum Foundation has sold 1,000 ETH, worth around $4.5 million, to obtain stablecoins. This sale was executed using CoWSwap, a decentralized protocol that optimizes prices by tapping into liquidity in a variety of different platforms, according to a post on X.

This conversion is part of a wider initiative to run treasury operations more effectively. The foundation still carries out research, grants, and donations, and remains liquid and minimizes market volatility exposure. A larger sale of 10,000 ETH valued at more than $43 million occurred last month through centralized exchanges. However, this recent sale looks distinct, and it signifies a shift towards decentralized exchanges with CoWSwap using TWAP (Time-Weighted Average Price) functionality.

1/ Today, The Ethereum Foundation will convert 1000 ETH to stablecoins via 🐮 @CoWSwap's TWAP feature, as part of our ongoing work to fund R&D, grants and donations, and to highlight the power of DeFi.

— Ethereum Foundation (@ethereumfndn) October 3, 2025

ETH to Stablecoins Swap Strengthens DeFi-Centric Treasury Strategy

As the Ethereum Foundation explained, this conversion of ETH to stablecoins aligns with its treasury policy. The policy aims at ensuring that the returns are above benchmark and at ensuring the long-term sustainability of Ethereum. The exposure to fluctuations in ETH prices ensures that the foundation will have sufficient stable liquidity to address funding requirements. The company did not reveal what stablecoins it got in this sale.

In addition to treasury risk management, EF will also reduce spending to 5% of the total treasury of the company, gradually growing to 15%. This endowment-type model tries to establish financial autonomy and more predictable long-term planning. CoWSwap was chosen to support this exchange, which enhances the centrality of EF towards decentralized systems. This decision reflects the attempt of the foundation to advance the utility and reliability of DeFi infrastructure.

Internal Changes and Refocused Grant Programs

Earlier this year, the Ethereum Foundation underwent a leadership restructure. Hsiao-Wei Wang and Tomasz K. Stańczak were appointed as co-executive directors in April. Both have experience with EF’s strategic operations in the past. By June, the foundation had restructured its core development teams and laid off some of its staff. These moves were made to improve internal efficiency and ensure better resource allocation in the future.

Announcing Protocolhttps://t.co/LMANvhQ0X3

— Ethereum Foundation (@ethereumfndn) June 2, 2025

Additionally, the foundation put open grant submissions under the Ecosystem Support Program on hold due to an overwhelming number of applications. EF now plans to focus on projects that address the most critical needs of the ecosystem.

These changes in funding approach and leadership provide evidence for a more disciplined treasury management approach. This ETH conversion enables the organization to maintain financial stability and also facilitate its growth in Ethereum.

Ethereum’s DeFi Leadership Remains Strong

Ethereum remains the dominant player in the decentralized finance sector. Data from DefiLlama shows that more than 60% of the total value locked on DeFi is on the Ethereum network. Solana, Bitcoin, and Binance Smart Chain are behind with smaller market shares.

Recently, the Ethereum co-founder Vitalik Buterin stressed the need for “low-risk” DeFi applications. He said that those sorts of tools could provide a stable income in the same way Google Search helps power Google. Buterin said, “But the revenue generator doesn’t have to be the most revolutionary or exciting application of Ethereum.” He added that it should be ethical and aligned with Ethereum’s core values.