TL;DR:
- Analysts detected massive withdrawals of 42,000 ETH and $54 million in USDT from Binance to wallets linked to the state holding company.
- The entity utilizes the Aave protocol to deposit Ethereum, borrow stablecoins, and acquire even more digital assets.
- This strategy marks a historic shift as one of the first leveraged positions taken by a government entity.
The Kingdom of Bhutan, renowned for its innovative crypto-asset treasury management, has once again captured the attention of financial analysts. Recently, a Druk Holdings leveraged ETH position totaling 117,000 tokens was identified, representing a significant milestone in the state-level adoption of decentralized finance.
Unlike its Bitcoin strategy, the Bhutanese government appears to be leveraging the DeFi ecosystem to generate active yields. Data from Arkham suggests that the holding company has executed at least 35 transactions toward Aave, moving capital that exceeds $735 million across various timeframes.
Expansion of the Ethereum Ecosystem in Bhutan’s Treasury
The Asian nation’s interest in Ethereum is no coincidence. In 2025, they introduced a national identity system based on this network with guidance from Vitalik Buterin. Consequently, the use of protocols like Lido and Aave reinforces their commitment to smart contract infrastructure to maximize national reserves.
However, this leverage strategy carries inherent risks that investors must consider carefully. While current market prices keep the position safe, the liquidation threshold sits near $1,400 per ETH, requiring constant monitoring of market volatility.
In summary, Bhutan’s evolution from Bitcoin mining to complex Ethereum strategies demonstrates unprecedented financial sophistication for a sovereign state. Markets will closely follow these movements, as they could serve as a model for other nations interested in integrating DeFi liquidity into their sovereign balances.
