Ethereum News Today: Hong Kong Crypto Giant Bridges Traditional and Digital Finance with $500M Treasury Fund

HashKey Group, a prominent digital asset financial services provider based in China Hong Kong, has announced plans to launch a $500 million Digital Asset Treasury (DAT) fund, which it describes as the largest of its kind in Asia. The fund is designed to serve as a bridge between traditional financial markets and cryptocurrency ecosystems, capitalizing on the growing demand for structured crypto services among institutional investors [2]. The DAT model diverges from conventional passive instruments such as ETFs by emphasizing continuous, real-time responsiveness to market dynamics [2].

The fund will focus on mainstream cryptocurrencies, particularly projects built on the Ethereum and Bitcoin blockchains. It will operate with a long-term investment horizon and support regular subscription and redemption cycles to meet liquidity demands [2]. HashKey’s strategy includes backing public blockchain networks and participating in operations related to DAT infrastructure, aiming to create a self-reinforcing cycle of capital investment, application development, and liquidity generation [2].

HashKey Group has a strong track record in the blockchain space, having invested in over 600 blockchain and cryptocurrency companies globally, including 400 tied to Ethereum. The company also runs the HashKey Exchange, one of the first in Asia to offer digital asset spot ETFs in China Hong Kong, and HashKey Cloud, a major blockchain node service provider. Additionally, its Layer-2 network, HashKey Chain, has already accumulated over $170 million in assets since its launch in early 2024 [2].

The firm views the DAT model as a structural innovation rather than a short-term trend. It believes that by applying traditional financial pricing models to on-chain assets, DAT can serve as a foundational framework for the next phase of asset management. This perspective is supported by HashKey Chairman Dr. Xiao Feng, an early Ethereum investor and a long-time advocate for blockchain adoption in Asia [2]. The firm’s broader goal is to establish institutional bridges connecting traditional capital with cryptocurrency ecosystems, starting in China Hong Kong and expanding globally [2].

Regulatory developments are shaping the trajectory of the DAT initiative. HashKey highlights the Nasdaq’s scrutiny of listed companies' cryptocurrency holdings as an indicator that well-structured firms will increasingly dominate the evolving market [2]. Compliance and trust are central to the DAT model’s development, with HashKey emphasizing that institutions excelling in asset selection, risk management, and governance will gain a competitive edge as the sector matures [2].

HashKey’s DAT fund is framed as more than a financial product; it is a strategic component of its long-term vision to build infrastructure for digital asset development. By setting standards and creating liquidity channels, the firm aims to support the next stage of digital asset adoption. This initiative aligns with its broader role as a key player in the global blockchain ecosystem, including organizing the annual HK Web3 Festival, which it positions as Asia’s largest industry gathering [2].

Source:

[1] Newsroom | HashKeyGroup - HashKey Exchange (https://group.hashkey.com/en/news)

[2] Hong Kong crypto firm HashKey plans $500 million treasury fund (https://blockchaintechnology-news.com/news/hong-kong-crypto-firm-hashkey-plans-500-million-treasury-fund/)

[3] Blockchain.com | Be early to the future of finance (https://www.blockchain.com/)