According to HashKey Capital CEO Deng Chao, the sustainability of corporate crypto treasuries relies on governance and discipline.
In a Cointelegraph interview, Chao emphasized that digital asset treasuries (DATs) can be sustainable over the long term, but “with an important caveat.” Entities that do not implement risk frameworks, have poor diversification, or treat digital assets merely as speculative investments are likely to fail during market volatility.
“Resilience emerges from discipline,” he explained. “Digital assets in themselves are not inherently unsustainable; rather, their management determines their success.”
This statement comes shortly after HashKey introduced its $500 million DAT fund in Hong Kong, aimed at Bitcoin- and Ethereum-based corporate treasuries, with plans to actively invest in onchain infrastructure, custody, and ecosystem services.
The fund is tailored for institutions and companies looking to operationalize digital assets. “It’s not just about holding them but also leveraging the growth of the underlying infrastructure,” he stated.
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DATs vs. ETFs: distinct tools, distinct objectives
Chao highlighted the difference between DATs and ETFs, noting “we view them not as competitors, but as complementary assets.” ETFs provide simple exposure for mainstream investors, whereas DATs are designed for treasuries that wish to incorporate crypto into their long-term strategies.
As per SoSoValue data, spot Bitcoin ETFs collectively hold $152.31 billion in assets, which is 6.63% of Bitcoin’s total market cap. In comparison, public companies possess 1,111,225 Bitcoin (BTC) on their balance sheets, valued at $128 billion, according to BitcoinTreasuries.NET.
Chao noted that many corporate treasuries have faced difficulties due to inflexible fund structures or extreme market volatility. HashKey’s DAT offering facilitates regular subscriptions and redemptions and includes both BTC and ETH to mitigate concentration risks.
“Treasuries that have ventured into crypto have long grappled with two main challenges: liquidity and operations,” Chao stated. “Our DAT fund was created to address these issues.”
HashKey plans to allocate capital across the Bitcoin and Ethereum (ETH) ecosystems, which Chao described as pivotal anchors of liquidity and innovation within the current crypto environment. Targeted sectors include custody, payments, staking services, and regulated stablecoin frameworks.
The fund has a global focus. Although it was launched in Hong Kong, Chao confirmed that HashKey is also engaging with markets in the US, Japan, Korea, Southeast Asia, and the UK, asserting that “the investment premise of the fund is global from the outset.”
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Myths hinder progress, Chao asserts
Chao also tackled skepticism from traditional financial sectors. Many institutional players still regard crypto as speculative, insecure, or incompatible with standard accounting practices. “These misconceptions represent not just a lack of understanding but barriers to broader institutional engagement,” he remarked.
Looking ahead, Chao expressed optimism about real-world asset (RWA) tokenization, institutional OTC markets, and infrastructure for onchain financial products.
“Tokenized products broaden the available investment landscape,” he noted. “OTC markets facilitate capital flow on a large scale… This shift indicates a move from fragmented crypto activities to a fully integrated digital finance ecosystem.”
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