HashKey Group rolls out $500M treasury fund to secure institutional crypto exposure

Hong Kong’s HashKey Group, the city’s largest licensed crypto exchange, has launched a $500 million digital asset treasury (DAT) fund, positioning itself as a key player in regulated crypto investments in the region.

The move highlights how Asian licensed exchanges are bridging traditional finance and blockchain-based treasuries. By offering a secure and regulated vehicle, HashKey aims to help large and small institutions enter the crypto market without the usual risks of storing tokens.

The timing is significant, as U.S. dollar-backed stablecoins have become a national focus under President Donald Trump. The recently signed GENIUS Act confirms Washington’s full support for stablecoins pegged 1:1 to the dollar. Asian regulators are watching closely, especially as citizens pour billions into these dollar-pegged stablecoins.

HashKey launches $500M fund to attract institutions to crypto

The DAT fund is designed to align with institutional investment strategies, enabling participants to benefit from the growth of digital assets while mitigating operational and regulatory challenges.

The fund will combine multiple digital assets, including Bitcoin and Ethereum, exploring their scaling solutions, decentralized applications (dApps), and other innovations built on their networks. On top of that, the fund will invest in tokenized stablecoins and tokenized exchange-traded funds (ETFs) because they’re more predictable.

With the DAT fund’s flexible structure, investors can move capital in and out of the fund depending on their financial planning and operational needs because it allows for regular subscriptions and redemptions.

This strategy is a growing trend that mirrors the popular U.S.-based software company Strategy. The company began storing Bitcoin in 2020, even when critics said it was highly unconventional and risky. However, as the prices grew, the company’s assets became worth over $64 billion. Other companies followed suit, and Standard Chartered reports that other firms that adopted Strategy’s approach now hold about 100,000 Bitcoin collectively.

Asia’s clear rules support HashKey’s digital asset treasury model

HashKey’s $500 million digital asset treasury fund came at the right time when Hong Kong’s Stablecoin Bill demands that every stablecoin issuer get a license and follow laws protecting investors. This makes it easier for the company, which already has a solid reputation, because now that the government is paying full attention, and it won’t allow a free-for-all market with no oversight.

Even better, HashKey already proved its commitment to the regulations by working with a well-established financial firm in Hong Kong, Bosera Asset Management. The duo will launch the world’s first tokenized money market ETF linked to both the Hong Kong dollar and the U.S. dollar. This product will give investors steady returns, proving that tokenization can create new tools that feel familiar yet more efficient.

HashKey even partnered with Ripple, which shows that major crypto players believe in its mission and are willing to support its growth. With Ripple in the mix, more capital investments will flow into projects built around XRP, which supports HashKey’s fund and boosts the crypto ecosystem in Asia. 

Other countries are also jumping onto this trend, with South Korea’s government allowing Bitcoin to be used as part of a national treasury strategy. Singapore has built a strict licensing system to protect investors, but it is also flexible enough to attract global funds that want to operate in the country. 

HashKey’s chief executive, Dr. Xiao Feng, said the DAT model allows regular subscription and redemptions so that institutions can manage their money more easily. And instead of focusing on volatile assets like Bitcoin and Ethereum, it mixes them with tokenized stablecoins and securities to balance out the risks. 

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