Crypto Long & Short: The Rise of Digital Asset Treasury Companies

Welcome to the institutional newsletter, Crypto Long & Short. This week, highlights include insights from Abdul Rafay Gadit of ZIGChain discussing the emergence of Digital Asset Treasury Companies (DATCOs) as a key player in institutional crypto. Meanwhile, Andy Baehr from CoinDesk Indices provides a 'Vibe Check,’ analyzing interest rates and crypto's recovery post-government shutdown. Lastly, this edition's 'Chart of the Week' delves into Ethereum DEX volumes and the UNI token price.

By Abdul Rafay Gadit, co-founder, ZIGChain

For years, corporate treasuries in crypto followed a passive strategy: buy bitcoin, hold, and hope. However, this model has now evolved with the emergence of Digital Asset Treasury Companies (DATCOs), which operate more like venture capital firms. Amidst a 59% drop in venture funding in Q2 2025, DATCOs are repurposing treasuries with a focus on staking, validator operations, and ecosystem development.

Publicly listed DATCOs in regions such as Europe and Asia are actively deploying digital assets into on-chain activities, earning yield while strengthening blockchain networks. This active treasury involvement redefines corporate finance, leveraging programmable assets to automate participation, increase transparency, and measure risks in real-time. The model not only generates yield but also contributes to ecosystem resilience, scalability, and governance—going beyond speculative strategies commonly seen in traditional corporate treasuries.

As regulators and institutions recognize the benefits of an active-treasury model, the shift from opacity to on-chain traceability is gaining momentum. Every transaction and validator reward under this system is recorded on-chain, offering auditors a framework for regulated participation.

DATCOs are emerging as the new capital backbone of crypto, paving the way for a future where capital works alongside code. This marks a significant departure from passive balance-sheet strategies to one where treasuries actively strengthen their owned networks.

By Andy Baehr, CFA, head of product and research, CoinDesk Indices

In November, prominent figures in the crypto market recalibrated bitcoin price forecasts, signaling a potential market bottom. Liquidity injections from the Federal Reserve, coupled with shifts in rates such as SOFR and CDOR, reflect the evolving macroeconomic landscape.

Notably, CoinDesk’s Overnight Rate (CDOR)—based on Aave lending pool data—showed a divergence as SOFR rates fell and CDOR rose. This dynamic suggests shifts in liquidity preferences among lenders and borrowers, potentially opening new opportunities for growth. Ethereum staking metrics (CESR) further highlight the ecosystem's maturation, despite challenges such as high validator exit queues.

Chart of the Week

This week’s focus is on Ethereum DEX volumes and the price of the UNI token in light of Uniswap’s proposal to implement a fee switch. If approved, the protocol could generate $300 million in annualized fees, diverting a portion towards UNI token buybacks. Currently, UNI’s price correlates strongly with Ethereum DEX activity. While competition remains a concern, Uniswap continues to position itself as a proxy bet on Ethereum's ecosystem post-proposal.

Listen

• Reid Hoffman, LinkedIn co-founder and PayPal founding board member, shares his journey from PayPal mafia to crypto and AI.

Read

• Analyze the global crypto markets and ETF/ETP flows in a report by CoinDesk Indices, Trackinsight, and ETF Express.

Watch

• A discussion hosted by TubeAI’s Nick Bencino featuring Andrew Baehr, Patrick Murphy, and Venkat Guntur on the institutionalization of crypto trading.

Engage

• Webinar: “From News Headlines to Price Impact: The evolving Digital Assets markets and regulatory landscape,” offered by CoinDesk Research and hosted by LSEG.