HashKey Launches $500M DAT Fund, Hong Kong Counts 49 DAT Firms

HashKey Group, Hong Kong’s largest licensed cryptocurrency trade, introduced its first Digital Asset Treasury (DAT) fund.

The fund targets $500 million and can again Bitcoin and Ethereum tasks whereas supporting international adoption initiatives.

Hong Kong Formalizes Its Crypto Presence

HashKey’s transfer alerts Hong Kong’s intent to formalize its position in digital asset finance. While crypto markets stay risky, institutional funds like this are considered as makes an attempt to introduce structured approaches to token publicity. By pursuing a diversified portfolio of DAT tasks, HashKey intends to align itself with broader developments in Web3 infrastructure.

The DAT mannequin refers to firms or funds that add cryptocurrencies to their steadiness sheets. This mirrors the technique pioneered by US-listed software program agency Strategy, previously MicroStrategy, which started buying Bitcoin in 2020. It is now the world’s largest company holder with over $63 billion in cryptocurrency. Its success influenced different companies, with Standard Chartered estimating that just about 100,000 Bitcoins are held by comparable entities.

Hong Kong’s fairness markets are witnessing an increase in “crypto-stock linkage.” Listed firms accumulate cryptocurrencies, and their share costs transfer with token markets. This apply is well-known within the US, the place Strategy’s inventory follows Bitcoin’s value. The pattern is now drawing consideration in Asia.

Hong Kong-listed firms, together with Boyaa Interactive and Huajian Medical, have disclosed important crypto purchases. The Hong Kong Digital Asset Listed Companies Association, established in late August, already has 49 members with a mixed market capitalization of roughly $20 billion. Many members are planning to develop their token holdings within the coming months.

Executives say the mannequin supplies oblique publicity for companies that can’t straight maintain tokens. At current Hong Kong occasions attended by distinguished business figures, Binance founder Changpeng Zhao(CZ) described DAT buildings as a method for listed firms and state-linked enterprises to take part with out breaching restrictions on direct digital asset possession.

MetaPlanet Stock Fell Sharply This Summer

Some high-profile strikes illustrate the passion. Yunfeng (*49*), linked to Jack Ma, has dedicated greater than $40 million to Ethereum. New Fire Technology, related to Huobi founder Li Lin, introduced a $500 million “coin hoarding” initiative, highlighting the size of deliberate funding. Binance-linked household workplace YZi Labs has additionally begun seeding funds targeted on Binance Coin accumulation.

Yet cautionary examples spotlight potential dangers. Japan’s Metaplanet, which turned the sixth-largest international Bitcoin holder, noticed its inventory value fall sharply this summer season after an preliminary surge. Analysts warn that firms counting on issuing debt or fairness to finance token purchases threat being uncovered when cryptocurrency costs decline, a cycle generally described because the “flywheel impact.”

Industry professionals be aware that whereas Hong Kong gives a horny venue for networking and fundraising, the US stays the popular marketplace for large-scale execution. The flexibility of US financing instruments resembling PIPE (Private Investment in Public Equity) and ATM (At-the-Market) choices permits listed companies to lift capital extra effectively than Hong Kong’s regulatory framework permits.

Hong Kong’s Role in Global Digital Asset Finance

Hong Kong’s positioning displays its effort to function a bridge between conventional finance and digital belongings. Although the size of belongings straight held by Hong Kong-listed companies remains to be underneath $2 billion, each institutional funds and listed firms seem dedicated to increasing participation.

The introduction of HashKey’s $500 million DAT fund represents some of the structured strikes in Asia by a licensed entity. At the identical time, the unfold of crypto-stock linkage reveals how listed firms are experimenting with new treasury methods. Whether these approaches show sustainable will depend upon regulatory situations, capital market urge for food, and the resilience of the crypto cycle.

The submit HashKey Launches $500M DAT Fund, Hong Kong Counts 49 DAT Firms appeared first on BeInCrypto.