Ethereum Foundation Converts $4.5M in ETH to Stablecoins via CoWSwap

The Ethereum Foundation (EF) has disclosed plans to convert 1,000 ETH, valued at approximately $4.51 million, into stablecoins. The proceeds will be directed toward research funding, grants, and ecosystem donations. The conversion will be completed through the decentralized exchange CoWSwap, utilizing a Time-Weighted Average Price (TWAP) mechanism to prevent market disruption and support the foundation’s DeFi-focused operations.

According to the , the sale aligns with EF’s long-term strategy to strike a balance between treasury stability and participation in decentralized finance. While the foundation did not disclose the specific stablecoins to be received, it noted that the transaction would highlight DeFi’s role in institutional fund management.

The sale follows an earlier internal proposal to convert 10,000 ETH in September, revealing a more gradual approach to diversifying the foundation’s holdings. The new transaction will occur through CoWSwap, confirming EF’s intent to favor decentralized liquidity solutions over centralized exchanges.

EF affirms that its treasury policy focuses on protecting financial reserves from market volatility while ensuring steady support for ongoing ecosystem initiatives. The foundation plans to utilize the stablecoin reserves to support research programs and grants, thereby mitigating its exposure to fluctuations in Ethereum’s price.

The stablecoin sale coincides with internal restructuring within the Ethereum Foundation. In April, EF appointed Hsiao-Wei Wang and Tomasz K. Stańczak as co-executive directors, marking a shift toward a dual-leadership framework. In June, the foundation further reorganized its staff and development teams to enhance operational efficiency and funding allocation.

EF also temporarily paused its open grant submission process under the Ecosystem Support Program to handle increased demand. The pause would allow the team to prioritize projects that have an immediate impact on Ethereum’s network development. The program is expected to reopen after internal reviews and funding assessments.

Ethereum continues to dominate decentralized finance, for nearly 68% of the sector’s total value locked (TVL). Data from late September placed Ethereum’s DeFi TVL above $100 billion, its highest level since early 2022.

Moreover, Co-founder Vitalik Buterin recently the importance of “low-risk” DeFi applications as a reliable source of income for the ecosystem. He compared their future role to that of Google Search, arguing that sustainable revenue models could strengthen Ethereum’s financial independence and long-term stability.