Crypto treasury management: What it is and how it works
Oct 28, 2025・6 min read
Key takeaways
- Crypto treasury management is similar to traditional management, but it’s focused on digital assets, which bring more potential risk and reward.
- Because the crypto market can be volatile, it’s best to diversify holdings and rely on verified crypto asset management tools.
- You should also partner with a bank that supports crypto on/off ramps and smooth fiat-stablecoin conversion.
- Companies and DAOs can save time and resources by using tools to support crypto treasury management tasks, like market monitoring.
Crypto treasury management first made headlines when high-profile companies like Tesla and MicroStrategy started publicly holding crypto as part of their balance sheet. As cryptocurrencies become more mainstream, this financial trend – where companies and decentralized autonomous organizations (DAOs) hold large pools of digital assets to fund operations and community initiatives — has taken off.
The problem with institutional crypto adoption? Holding crypto assets isn’t the same as holding fiat currencies or traditional assets. Crypto assets require new forms of treasury management. Companies have to delicately balance cash flow and yield generations with ensuring higher security standards and maintaining full compliance with legal regulations.
This article will walk through everything you need to know about crypto treasury management and how to use it strategically.
What’s crypto treasury management?
Crypto treasury management is the process of keeping track of a company or DAO’s digital assets. It shares many principles with traditional corporate treasury management. While traditional treasury management deals with familiar assets like bonds, crypto treasury management uses things like tokens, such as Bitcoin (BTC) or Ethereum (ETH).
Managing these assets means companies have to decide where and how to store these tokens – if they aren’t going to use them. Some choose to actively trade, while others hold long-term. If the company is aiming for an even higher yield, they have the option to deploy digital assets into staking or lending.
In general, companies navigate four operational aspects in crypto treasury management:
- Protecting against volatility
- Ensuring liquidity for expenses
- Finding safe ways to generate returns
- Planning cash flow
When handled with care, treasury management makes crypto less of a gamble, and digital assets become part of standard operations rather than a guessing game.
Traditional vs. crypto treasury management
Currencies aren’t the only thing that differs between traditional and crypto corporate treasury management. Here are a few other key distinctions between the two.
Asset types
Treasurers in corporate management usually work with traditional assets like cash. Crypto treasurers look after popular cryptocurrencies like Bitcoin and Ethereum. Many companies add stablecoins and altcoins to diversify their portfolio, and complex crypto systems can even include positions on decentralized finance (DeFi).
Risk profile
Crypto treasuries deal with different pressures than their traditional counterparts. Instead of interest rates or FX swings, volatility and exchange risks are front and center. Crypto often has higher highs and lower lows than other assets, so treasurers must account for more risk.
Liquidity management
Liquidity planning also differs from traditional bank accounts. In crypto treasury, stablecoins might cover payroll while on-chain funds and off-ramps keep operations moving.
Yield generation
Corporate treasury management allows companies to earn returns by putting money into government treasuries or bonds.
In crypto treasury management, yield can come from multiple sources. Staking is one of the most popular options, but some new companies known as digital asset treasury companies (DATCOs) also participate in DeFi protocols to boost their earnings.
Custody and security
Regulated (centralized) banks and custodians manage assets in traditional finance.
In crypto treasury management, managers have to decide if they’re going to use self-custody wallets or institutional providers. Security becomes part of everyday work, especially when access to private keys or multi-signature (multisig) wallets determine who can move funds.
One growing security practice for corporations is using crypto platforms that publish proof-of-reserve reports. These reports give extra transparency by showing that the digital assets the platform holds matches what’s promised.
Compliance and reporting
Traditional rules of treasury under GAAP and IFRS are well-established. However, in crypto treasury management, companies have to adapt to new regulatory standards such as Financial Accounting Standards Board (FASB) fair value reporting, IRS 1099-DA forms for taxes, and Financial Access Task Force (FATF) Travel Rule.
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Core strategies in crypto treasury management
Here are a few crypto treasury strategies you can use in your crypto management processes for strong financial results.
Diversification
Don’t put all your eggs in one basket. Aim for a balanced crypto treasury by starting with well-known and well-regarded coins like BTC and ETH. You can add a few altcoins that are on the rise for more earning potential and stablecoins for liquidity later, which spreads the risk and supports a steady cash flow.
Counteract volatility
Once your organization is comfortable with handling well-known coins and ready to expand into other kinds of crypto, look into stablecoins. Parking part of your treasury in stablecoins means you’re more likely to have enough funds for salaries and suppliers. Use stablecoins like USDC or USDT to manage the crypto market’s volatility.
Manage liquidity
Set aside digital assets for operational needs. You can use easily tradable cryptocurrencies or over-the-counter (OTC) desks alongside stablecoins for daily expenses and lock the rest of your assets in long-term storage.
To keep cash flow flexible, work with a bank that supports crypto activity – this makes it easier to move funds between exchanges and traditional accounts and to convert between stablecoins and fiat when needed. Banks such as Custodia, Mercury, Dakota, BVNK, and Customers Bank provide that kind of integrated support.
Generate yield
Some treasuries put their idle digital assets to work. This usually involves staking or lending to generate yield. While it can create attractive returns, it requires extra-careful risk management.
Hedging and derivatives
When the cryptocurrency market swings, use futures or options to protect your assets. These tools work as a safety net, softening the impact of short-term volatility and helping you steady cash flows.
Long-term holding (HODLing)
Many organizations treat Bitcoin and Ethereum as strategic reserve digital assets. So, holding cryptocurrencies over the long term (a strategy sometimes known as HODLing) can be a part of your broader treasury management plan.
What tools are best for corporate crypto treasuries?
Specialized crypto asset management tools help companies run a secure and efficient crypto treasury. Some strong options include:
- Coinshift: Focused on DAOs and enterprises, Coinshift brings structure to treasury management. Instead of juggling spreadsheets, managers can oversee reporting and payment approvals on one platform.
- Krayon Digital: This decentralized Web3 tool provides custody solutions and integration for managing digital assets at scale, using multi-party computation to keep your inputs private.
- Circle: Best known for its USDC stablecoin, Circle also offers custody accounts and developer-friendly APIs to enable smoother cash flow.
- FalconX: Alongside direct access to markets for trading and financing, FalconX offers extensive risk management tools for day-to-day operations and bigger strategic moves.
- Cumberland DRW: This is a well-established OTC provider known for deep liquidity and reliable execution of large digital asset trades.
- Blockfills: This OTC provider offers institutional-grade liquidity and seamless on/off-ramp capabilities to support treasury operations.
Best practices for asset managers
Asset managers who are looking after a DAO, enterprise, or institutional fund can make their life a lot easier by sticking to a few simple practices:
- Invest in strong security: Keep digital assets safe by protecting private keys with MPC. Also, use secure crypto custody to mitigate risk.
- Work with trusted treasury management partners: Pick reliable partners with active, valid licenses and insurance.
- Establish clear governance: Set simple rules for asset allocation. Know who approves crypto payments and how much can be moved.
- Update in real time: Consider using techniques like mark-to-market crypto accounting to track daily price changes on the crypto market so you always have a clear record.
- Keep liquidity simple: Make sure you can switch between crypto and fiat currencies when needed to keep bills and staff paid.
- Review treasury protection: Check your setup often and update your risk management as the market changes.
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Treasury management can be a massive undertaking, and every decision counts. Using crypto portfolios like CoinTracker can streamline your crypto management by connecting your exchanges and wallets into one platform. CoinTracker supports corporate treasurers dabbling in crypto by tracking your portfolio in real time and keeping reporting simple. This way, you can focus on the things that really matter, like securing your assets and finding the best new way to maximize your yield.
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Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
How do DAOs manage treasuries?
DAO treasury management typically involves using tools like multisig wallets and platforms to maximize yield while maintaining the necessary income for the DAO to function. Governance votes decide allocations, and treasury management policies ensure funds are secure and liquid.
What tools are best for corporate crypto treasuries?
Tools that support risk management, monitor crypto prices, and manage wallet access are great options for corporate crypto treasuries. They can help a company simplify liquidity and enforce custody policies.
How do companies reduce risk in crypto treasuries?
Many teams start to reduce their risks with diversification instead of holding all their assets in one token. You can use stablecoins for expenses and hedging strategies when market swings threaten core reserves.