Hushkey Group, a Hong Kong-based digital assets financial services company, has announced plans to launch Asia’s largest multi-currency vehicle to fill traditional finance and crypto.
The company said Monday that the fund will serve as a “institutional bridge between traditional financial capital and on-chain assets,” with pay increases aimed at over $500 million in phase one that will help.
Constructed as a permanent vehicle, DAT funds lead capital to both assets and ecosystem development while enabling ongoing subscriptions and redemption.
Hashkey said the model would provide institutions with a compliant way to participate in the crypto market, directing resources to public chains such as Ethereum, and creating what would be described as a flywheel for investment, applications, value capture and liquidity exits.
It frames the data as a “long-term structural opportunity,” claiming it will better match Crypto’s 24/7 volatility compared to passive ETFs.
“By combining traditional financial price discovery logic with on-chain asset structures, DAT serves as a career mechanism for the next generation of asset formats,” the group said in a statement. Beyond being a new interface of traditional capital, DATS states, “We create a path for the on-chain ecosystem to move towards compliance and globalization.”
The company did not respond immediately Decrypt’s Requests for comment on this point.
Disclosure: Hashkey Capital, the investment arm of Hashkey Group, is one of 22 editorially independent decryption investors.
Data: “Strong but dangerous”
Industry observers have noted that DAT funds exist between the ETF and the listed Treasury Department.
“ETFs are the cleanest and lowest friction method for obtaining price exposure through daily NAV, asset separation and tight surveillance,” said Michael Repetny, co-founder and CEO of the agency-grade Solana Solana Staking Infrastructure Firm Marinade Labs. Decryption.
But compared to publicly listed financing companies, such as strategies that can sway between “corporate behavior” and “capital structure,” the DAT Fund said.
The DAT funds can offer “beta plus “operational alpha” (e.g. staking, Program Treasury, governance, etc.), but the flexibility “is a high risk for managers and requires robust control.”
Still, Repetny warned that vertical integration is “strong but dangerous” across investment, custody and operations, and risks conflicts of interest more than “pricing and execution.”
Repetny said the baseline should include an independent committee, clear dispute disclosure, external custody, best interpretation between venues, over-chain transparency, and a transparent staking policy.
“If not, LPS would not have purchased the ‘Operating Alpha’. They are buying private underlying risks,” he said.
The same concerns have emerged among agency service providers warning that disputes could escalate when companies operate and invest in DAT projects.
“One of the major risks is a conflict of interest,” said Charmaine Tam, OTC director at Hong Kong’s licensed financial institution Hex Trust. Decryption.
As a form of vertical integration, such a model “proven to be problematic in the crypto industry,” Tam said, citing the collapse of FTX.
Operating a DAT project means that a company has “access to both its own capital and its investors’ funds.” This can open up the risk of “prioritizing your own investment over your client’s investments,” especially when facing financial difficulties.
Despite these factors, its location in Hong Kong gave Hashkey a “dominance over the US market” and cited the latter facing “scrutiny and fragmentation” on greater regulations.
Tam said that efforts to become Hong Kong’s digital asset hub have created a “support environment for innovation with clear rules.” The United States has been “mainly reactive, and often relying on enforcement measures and vague guidance by regulators.”
