Reliance Global Group (NASDAQ: RELI), an insurance technology company, has liquidated its diversified cryptocurrency portfolio—including Bitcoin and Ethereum—to consolidate its entire digital asset treasury (DAT) into the privacy token Zcash (ZEC).
The strategic overhaul, announced late Tuesday, follows a comprehensive review by the company’s Crypto Advisory Board (CAB). The firm stated that Zcash’s “compliance-ready” privacy architecture and long-term institutional flexibility offer the “most compelling opportunity” for its treasury strategy.
The decision marks a sharp reversal from Reliance Global Group’s initial strategy, adopted in September, which focused on building a multi-asset portfolio that included major coins like Bitcoin, Ethereum, Cardano, XRP, and Solana for diversification.
“As we evaluated the rapidly evolving digital asset landscape, it became clear that Zcash’s privacy architecture and institutional flexibility align more closely with our vision than a diversified crypto portfolio,” said Ezra Beyman, Chairman and CEO of Reliance Global Group.
Moshe Fishman, a member of the company’s Crypto Advisory Board, underscored the conviction behind the move: “Our decision to consolidate our DAT into Zcash reflects a high-conviction belief in ZEC’s long-term potential and its unique position at the convergence of cryptography, compliance, and financial privacy.”
The core rationale for the pivot rests on Zcash’s unique design, which is built on Bitcoin’s foundational structure but incorporates advanced zero-knowledge proofs (zk-SNARKs).
- Dual Transaction Model: Zcash offers optional privacy, allowing users to choose between transparent and shielded (private) transfers.
- Regulatory Alignment: This bimodal design allows institutions to protect sensitive financial data while still maintaining the ability to selectively disclose transaction details to auditors and regulators for compliance purposes.
“We believe this focused approach positions Reliance to operate with greater clarity and seize the opportunities emerging in a rapidly transforming digital economy,” CEO Beyman added.
The decision also follows a period of exceptional performance for the privacy coin, with ZEC rallying over 1,200% in the last 90 days, reaching highs not seen since 2018. The surge, backed by renewed institutional interest from players like Cypherpunk Technologies and key regulatory developments, suggests a growing institutional appetite for privacy assets that can meet compliance standards.
