Hong Kong's HashKey Group, the largest licensed crypto exchange in the city, has launched a $500 million digital asset treasury (DAT) fund. This move aims to position HashKey as a central player in regulated crypto investments within the region. The fund is designed to bridge the gap between traditional finance and blockchain-based treasuries, offering a secure and regulated avenue for institutions to enter the crypto market while mitigating the typical risks associated with storing tokens.
The DAT fund is structured to align with institutional investment strategies, enabling participants to benefit from the growth of digital assets while navigating operational and regulatory challenges. It will combine multiple digital assets, including Bitcoin and Ethereum, and explore scaling solutions, decentralized applications (dApps), and other innovations built on their networks. Investments will also extend to tokenized stablecoins and tokenized exchange-traded funds (ETFs) due to their predictable nature. The fund's structure allows for regular subscriptions and redemptions, providing investors with flexibility in managing their capital based on financial planning and operational needs.
HashKey's $500 million DAT fund arrives as Hong Kong's Stablecoin Bill mandates that all stablecoin issuers obtain a license and adhere to investor protection laws. This regulatory environment supports HashKey's position, as the company has already demonstrated its commitment to regulations by collaborating with Bosera Asset Management, a well-established financial firm in Hong Kong.
The fund aims to achieve two primary goals: establishing a diversified digital asset portfolio and supporting sustainable Web3 infrastructure. HashKey plans to invest in and help build DAT projects globally, with an initial focus on Ethereum and Bitcoin ecosystem projects. This approach combines investment with direct participation in the ecosystem.
HashKey's DAT fund differs from passive ETFs by actively aligning with the 24/7 trading cycle of crypto markets and leveraging risk management principles from traditional finance. The fund's perpetual structure enables dynamic risk management through staking, basis trading, and liquidity provision.
In addition to the DAT fund, HashKey is partnering with Ripple, indicating that major crypto players believe in its mission and are willing to support its growth. This partnership is expected to drive capital investments into projects built around XRP, further supporting HashKey's fund and boosting the crypto ecosystem in Asia. HashKey has also partnered with Chinese brokerage GF Securities to launch tokenized securities denominated in U.S. dollars, Hong Kong dollars, and offshore yuan, backed by HashKey Chain infrastructure.
HashKey has secured regulatory approvals in key jurisdictions, including Hong Kong, Singapore, Japan, and Ireland. In the Middle East, HashKey MENA received an in-principle license from the Dubai Virtual Assets Regulatory Authority, enabling it to offer broker-dealer and exchange services. In Europe, HashKey Europe obtained a Virtual Asset Service Provider license from the Central Bank of Ireland under the EU's MiCA regime.
Looking ahead, HashKey's DAT strategy aims to establish a scalable institutional framework for the next phase of digital asset adoption. By connecting capital inflows with ecosystem growth, the company seeks to accelerate the mainstream acceptance of tokenized assets globally. This initiative aligns with HashKey's broader efforts across exchanges, capital markets, infrastructure, and tokenization services, all aimed at building a global digital asset economy with institutional-grade standards.
