In a recent interview on September 20, 2025, HashKey Capital CEO Deng Chao asserted that corporate crypto treasuries equipped with robust long-term strategies will “survive any market,” provided they prioritize governance and discipline over speculative bets. Chao’s comments, shared amid the launch of HashKey’s $500 million Digital Asset Treasury (DAT) fund in Hong Kong, underscore the need for risk frameworks and diversification in managing crypto holdings. As public companies hold over 1.1 million BTC worth $128 billion and spot Bitcoin ETFs manage $152.31 billion (6.63% of BTC’s market cap), Chao’s advice is timely for institutions navigating volatility. This article delves into Chao’s key insights, the challenges facing crypto treasuries, and the future of institutional adoption.
Chao’s Core Message: Discipline Over Speculation
Chao emphasized that digital asset treasuries (DATs)—corporate reserves of cryptocurrencies like Bitcoin and Ethereum—are not inherently unsustainable; their longevity depends on management practices. He highlighted two persistent issues plaguing many treasuries: liquidity constraints and operational rigidity, often exacerbated by treating crypto as short-term gambles rather than strategic reserves.
- Risk Frameworks Essential: DATs must incorporate formal governance, including diversification (e.g., BTC and ETH exposure) and liquidity planning to weather market cycles.
- HashKey’s DAT Fund: Launched weeks ago, the $500 million fund addresses these gaps with regular subscriptions/redemptions and a focus on mainstream assets, targeting global investors in the US, Japan, Korea, Southeast Asia, and the UK.
- Resilience Through Operations: Chao noted that treasuries failing due to extreme volatility often lack operational controls like custody and accounting standards.
“Resilience comes from discipline,” Chao stated, arguing that well-managed DATs can serve as strategic reserves akin to traditional assets.
Challenges Facing Corporate Crypto Treasuries
Chao’s remarks address common pitfalls observed in corporate crypto adoption:
- Volatility Burns: Many treasuries have suffered from rigid structures unable to handle price swings, leading to forced sales during downturns.
- Concentration Risks: Over-reliance on single assets like BTC exposes firms to sector-specific downturns; Chao advocates ETH diversification.
- Regulatory Hurdles: While ETFs hold $152.31 billion, corporate holdings face scrutiny; Chao sees tokenized real-world assets (RWAs) and OTC markets as solutions for scale.
- Misconceptions: Viewing crypto as speculative rather than operational assets deters broader adoption, despite growing institutional interest.
Data from BitcoinTreasuries.NET shows public companies hold 1,111,225 BTC ($128 billion), but poor management has led to collapses in volatile periods.
Future Outlook: Tokenization and Institutional Growth
Chao is bullish on emerging trends that will sustain DATs:
- RWA Tokenization: Expanding the investable universe through onchain real-world assets, projected to unlock trillions in value.
- OTC and Onchain Finance: Institutional OTC markets and infrastructure will enable scaled capital flows, shifting crypto from fragmented to integrated ecosystems.
- Global Expansion: HashKey’s fund targets multiple regions, capitalizing on a softening regulatory environment and rising corporate adoption.
With Bitcoin’s illiquid supply at 72% and BlackRock earning $260 million from crypto ETFs, Chao’s vision aligns with maturing markets.
The Bigger Picture: Institutional Crypto Resilience
Chao’s emphasis on discipline resonates amid 2025’s market dynamics, where corporate treasuries like MicroStrategy’s 638,985 BTC holdings exemplify strategic holding. As India’s exporters seek RBI relief and Trump’s H-1B fees redirect talent, well-governed DATs could provide stability. Globally, this mirrors xAI’s $10B raise and Oracle’s $20B Meta deal, where disciplined investment yields long-term gains.
Conclusion
HashKey CEO Deng Chao’s assertion that crypto treasuries with long-term strategies will “survive any market” is a call for governance in an asset class defined by volatility. By prioritizing risk management and diversification, corporations can harness crypto as strategic reserves, as exemplified by HashKey’s $500 million fund. In a maturing ecosystem, Chao’s insights offer a roadmap for sustainable adoption.
