Digital asset treasury (DAT) firms have amassed over $105 billion in crypto holdings, positioning themselves to evolve from speculative investment vehicles into enduring economic engines within blockchain ecosystems. Syncracy Capital co-founder Ryan Watkins argues that, unlike grant-making crypto foundations, select DATs can leverage programmable tokens to fund businesses, influence network governance and generate sustainable yields.
In a September 23 blog post and accompanying social media thread, Watkins outlined a vision in which well-managed DATs deploy treasuries to operate infrastructure—such as validators, RPC nodes and market-making services—and participate in on-chain governance proposals. By staking tokens for network fees, supplying liquidity, lending assets and acquiring critical ecosystem primitives, these firms can build productive, yield-generating balance sheets akin to closed-end funds or banks.
Watkins contrasted this model with bitcoin-only strategies that lack programmability. Tokens on smart contract platforms, such as ETH, SOL and HYPE, enable diversified revenue streams and active participation in protocol evolution. He likened successful DATs to a hybrid of Berkshire Hathaway’s long-term capital approach and traditional financial vehicles, with returns accruing in token appreciation per share rather than management fees.
However, Watkins cautioned that only a few first-generation DATs will mature. Many will fade due to overreliance on financial engineering without operational substance. Survivors will pair disciplined capital allocation with ecosystem engagement, recycling cash flows into token accumulation, product development and governance influence. Over time, these firms could become major pillars of blockchain economies, driving protocol growth and delivering sustainable value to investors.
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