Entertainment and esports company GameSquare Holdings has announced a strategic partnership with the Katana blockchain.
According to a release, the collaboration is designed to advance GameSquare’s on-chain strategy and generate decentralised finance (DeFi) yields.
Katana Offers GameSquare Multiple Yield Streams
The partnership, which includes industry participants Dialectic, 1OF1 AG, Goff Capital, and Robert Leshner, was announced on October 29th.
Under this arrangement, Dialectic, the specialised blockchain asset manager for GameSquare’s Ethereum (ETH) treasury, is set to allocate a portion of these assets into Katana’s decentralised finance (DeFi) ecosystem.
Katana’s DeFi infrastructure will be used to generate yield on a portion of GameSquare’s Ethereum holdings. This is expected to occur through mechanisms including chain-owned liquidity, Vault Bridge Ethereum yield routing, and yield-generation from US Treasury-backed stablecoins.
These components represent different avenues for the company’s capital deployment. The arrangement is structured with the aim of providing mutual benefit, as Katana’s developers will leverage GameSquare’s creative and marketing networks to expand its brand reach.
This move follows a significant expansion of GameSquare’s digital asset holdings earlier this year.
The company’s board approved a 150% increase to its Ethereum treasury programme, raising its investment capacity from $100m (~ £74.5m) to $250m (~£186.2m).
From this allocation, approximately $40m (~£30.4m) has been used to acquire Ethereum, supplemented by a $5.15m (~£3.83m ) investment to acquire a CryptoPunk NFT.
GameSquare, the parent company of brands like FaZe Clan, has an established presence in the esports, media, and entertainment sectors.
The company’s pivot this year toward digital asset accumulation is a key initiative for diversifying its revenue streams. This strategy extends beyond direct treasury management, as evidenced by agency-of-record agreements secured with the Animecoin Foundation and Rekt Brand, the latter valued at $2m (~ £1.6m).
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