According to Deng Chao, CEO of HashKey Capital, robust governance and unwavering discipline are crucial for the survival and success of corporate crypto holdings.
In a discussion with Cointelegraph, Chao explained that digital asset treasuries (DATs) can offer long-term value, but he emphasized a critical condition. He believes that DATs that lack proper risk management strategies, fail to adequately diversify their holdings, or treat digital assets as mere speculative investments are vulnerable to collapse during market downturns.
“Strength is built on a foundation of discipline,” he stated. “Digital assets, in themselves, aren’t inherently unstable; the key factor is how effectively they are managed.”
His comments come shortly after HashKey’s announcement of the launch of a $500 million DAT fund in Hong Kong. This fund will concentrate on corporate treasuries holding Bitcoin and Ethereum and actively allocate capital across various on-chain infrastructure, secure custody solutions, and other related ecosystem services.
The fund aims to provide a solution for institutions and businesses seeking practical uses for their digital assets, beyond just holding them. According to Chao, the goal is to allow them to “benefit from the growth and development of the underlying infrastructure.”
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DATs vs. ETFs: Distinct Purposes and Applications
Chao differentiated between DATs and ETFs, clarifying that “they should be viewed as complementary tools rather than direct competitors.” He explained that ETFs offer a simple way for mainstream investors to gain exposure to digital assets, while DATs are specifically tailored for corporate treasuries looking to integrate crypto into their long-term business strategies.
According to data from SoSoValue, spot Bitcoin ETFs currently hold a total of $152.31 billion in assets, representing 6.63% of Bitcoin’s total market capitalization. In comparison, public companies hold 1,111,225 Bitcoin (BTC) on their balance sheets, valued at $128 billion, as reported by BitcoinTreasuries.NET.
Chao pointed out that many corporate treasuries have experienced difficulties due to inflexible fund structures or extreme market volatility. HashKey’s DAT structure supports both regular investment and withdrawal options and incorporates exposure to both BTC and ETH to mitigate concentration risk.
“Companies that have ventured into crypto management have frequently faced issues relating to liquidity and operational efficiency,” Chao noted. “Our DAT fund is specifically designed to address these challenges.”
HashKey intends to allocate capital across the Bitcoin and Ethereum (ETH) ecosystems, which Chao described as the foundations for liquidity and innovation within the current digital asset space. He emphasized priority areas such as secure custody solutions, payment processing, staking services, and infrastructure for regulated stablecoins.
The fund’s reach extends globally. While initially launched in Hong Kong, Chao confirmed that HashKey is also targeting markets in the US, Japan, Korea, Southeast Asia, and the UK, emphasizing that “the fund’s investment strategy has been designed with a global perspective from its inception.”
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Addressing Misconceptions to Promote Adoption
Chao also addressed the existing skepticism coming from the traditional finance sector. He acknowledged that numerous institutional investors still view crypto as a purely speculative investment, difficult to secure, and incompatible with traditional accounting standards. He argued, “These misconceptions represent not merely a lack of understanding but also significant barriers preventing broader institutional adoption.”
Looking forward, Chao expressed HashKey’s strong positive outlook on real-world asset (RWA) tokenization, institutional OTC markets, and the development of infrastructure for on-chain financial products.
“Tokenized assets expand the range of investable opportunities,” he explained. “OTC markets facilitate the flow of capital at scale… This convergence indicates a transition from isolated crypto activities to a fully integrated digital financial ecosystem.”
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