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Your corporate cash reserve is losing money. Every quarter.
$8 trillion in global corporate cash generates negative real returns through low yielding money market funds.
This represents the largest systematic wealth destruction in corporate history, but also the greatest treasury modernization opportunity of our generation
For over a decade after the Global Financial Crisis, zero interest rates and quantitative easing dominated. Borrowing costs fell, fueling speculation and undervaluing productive companies.
This era is over. Interest rates have jumped to over 5%, seeing the fastest rise since the 1980s. Yet fiscal policy continues to borrow, maintaining large deficits with inflation gradually eroding the real value of outstanding debt, now effectively transferring value from savers to debtors.
The result? Persistently negative real yields as inflating debt remains the main option for overleveraged economies. Traditional cash management models, based on stable currencies and positive real returns, have become obsolete. Treasurers now face ongoing erosion of purchasing power and must rethink strategies for growth and protection in this new environment.
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Allowing inflation and currency depreciation to erode the real value of debt has become a primary tool for governments running deficits.
As real yields stay negative and inflation endures, treasurers look beyond the outdated models for new frameworks which combine asset protection and long-term growth.
For strong cash-generating companies, the choice is stark: transform balance sheets into a growth story, or accept steady wealth destruction through obsolete treasury management.
The starting point? Getting off zero.
The ‘get off zero’ principle transforms treasury management by replacing the lowest-yielding instruments with modest digital asset exposure. This creates meaningful portfolio enhancement without disrupting operational discipline.
Revisiting the Balance Sheet
Rather than accepting the slow erosion of purchasing power through traditional instruments, forward-thinking treasuries are exploring digital asset allocation as a pathway to transform defensive balance sheets into compelling growth narratives.
But not all digital assets are created equal. Corporate treasuries require assets with institutional-grade characteristics: established track records, regulatory clarity, and differentiated utility that justifies their inclusion in sophisticated portfolio construction.
The Digital Asset Basket: Bitcoin, Stablecoins, and Solana
These three assets form a complementary framework: Bitcoin grounds the allocation, Stablecoins provide liquidity, and Solana provides growth potential.
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Bitcoin: The Digital Reserve Asset
Bitcoin functions as the foundational store-of-value component.
With its fixed supply and immutable monetary policy, Bitcoin provides portfolio insurance against currency debasement, the defensive anchor without operational complexity.
Stablecoins: The Digital Proxy for Fiat
Stablecoins such as USDC offer price stability backed 1:1 to the US Dollar.
For corporate treasuries, stablecoins bring liquidity management, rapid cross-border transactions, and streamline operational payments. Allocating to stablecoins lets treasuries earn yield and maintain operational flexibility, with seamless access to fiat-denominated transactions.
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Solana: The Growth Asset
Solana is the high-performance infrastructure powering internet capital markets, payments, and decentralized applications.
Designed for scalability and speed with low transaction costs, Solana enables real-time settlement, programmable finance, and staking yields, making it ideal exposure for growth-focused digital treasuries.
To quantify the impact of digital asset treasury allocation, we examine four portfolio scenarios analyzing how different allocation strategies across this digital asset trinity perform against a traditional 60/40 baseline allocation. The simulations, based on the previous 5 years with quarterly rebalancing, demonstrate how strategic deployment can transform treasury outcomes.
Source: Bitwise Asset Management with data from Bloomberg. Data from December 31, 2020 to September 30, 2025. Traditional Portfolio consists of 60% equities (represented by the FTSE Global All Cap Index) and 40% bonds (represented by the Bloomberg US Aggregate Bond Float Adjusted Index).
Past performance does not predict or guarantee future results. Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns. Historical performance of sample portfolios has been generated and maximized with the benefit of hindsight. The returns do not represent the returns of an actual account and do not include the fees and expenses associated with buying, selling and holding funds or crypto assets. Performance information is provided for informational purposes only.
- Even a 1% allocation improved annualized returns from 6.3% to 7.0% (+70 basis points)
- 5% allocation generated 9.8% annualized returns with only modest volatility increase
- Sharpe ratio improvement from 0.28 to 0.62 at the 5% allocation level
Source: Bitwise Asset Management with data from Bloomberg. Data from December 31, 2020 to September 30, 2025. Traditional Portfolio consists of 60% equities (represented by the FTSE Global All Cap Index) and 40% bonds (represented by the Bloomberg US Aggregate Bond Float Adjusted Index). The Yield-Bearing Stablecoin is simulated using USDC and the CBOE Short-Term Interest Rate Index, which tracks the yield of the 3 Month U.S. Treasury Bill.
Past performance does not predict or guarantee future results. Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns. Historical performance of sample portfolios has been generated and maximized with the benefit of hindsight. The returns do not represent the returns of an actual account and do not include the fees and expenses associated with buying, selling and holding funds or crypto assets. Performance information is provided for informational purposes only.
- 2.5% allocation delivered 8.8% annualized returns vs. 6.3% traditional portfolio
- 5% allocation achieved 11.2% returns with Sharpe ratio of 0.75
- Maximum drawdown remained within reasonable parameters
Source: Bitwise Asset Management with data from Bloomberg. Data from December 31, 2020 to September 30, 2025. Traditional Portfolio consists of 60% equities (represented by the FTSE Global All Cap Index) and 40% bonds (represented by the Bloomberg US Aggregate Bond Float Adjusted Index). The Yield-Bearing Stablecoin is simulated using USDC and the CBOE Short-Term Interest Rate Index, which tracks the yield of the 3 Month U.S. Treasury Bill.
Past performance does not predict or guarantee future results. Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns. Historical performance of sample portfolios has been generated and maximized with the benefit of hindsight. The returns do not represent the returns of an actual account and do not include the fees and expenses associated with buying, selling and holding funds or crypto assets. Performance information is provided for informational purposes only.
- 1% Solana allocation alone boosted returns to 10.5% annually
- 2.5% allocation generated 16.6% annualized returns with 1.09 sharpe ratio
- Demonstrates the potential for protocol-specific treasury strategies
Source: Bitwise Asset Management with data from Bloomberg. Data from December 31, 2020 to September 30, 2025. Traditional Portfolio consists of 60% equities (represented by the FTSE Global All Cap Index) and 40% bonds (represented by the Bloomberg US Aggregate Bond Float Adjusted Index).
Past performance does not predict or guarantee future results. Nothing contained herein is intended to predict the performance of any investment. There can be no assurance that actual outcomes will match the assumptions or that actual returns will match any expected returns. Historical performance of sample portfolios has been generated and maximized with the benefit of hindsight. The returns do not represent the returns of an actual account and do not include the fees and expenses associated with buying, selling and holding funds or crypto assets. Performance information is provided for informational purposes only.
We hold these truths to be self-evident in the digital age.
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Cash Is Not King—Productive Assets Are
Traditional cash management preserves capital but destroys purchasing power. Digital assets provide exposure to technological infrastructure while generating yields that compound over time.
Diversification Includes Monetary Assets
Portfolio theory applies to treasury management. Digital assets offer uncorrelated returns to traditional financial instruments while providing a hedge against fiat currency debasement.
Currency Risk is a Catalyst
Technology risk and currency risk both shape treasury strategy. Adopting digital assets need to be assessed against the risks of USD devaluation and structural inflation.
Staking Rewards Generate Treasury Income
Proof-of-stake networks generate organic economic activity and value that produce real yields. This represents authentic income generation through network participation.
Regulatory Clarity Enables Fiduciary Action
Current regulatory frameworks continue to provide guidance for prudent digital asset treasury implementation. Comprehensive clarity continues to develop through ongoing policy frameworks.
Every Company Will Be A DAT
Just as every company became a "technology company" and embraced "digital transformation," digital assets are likely to become increasingly integrated into corporate treasury operations over time.
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CFOs now have the tools and frameworks to integrate digital assets into their treasury strategies.
/ governance
Establish frameworks for risk management and operational oversight integrating with existing treasury protocols.
/ Service Provider Selection
As corporate treasuries begin to look at implementation of a digital asset treasury strategy, selecting the right service providers is critical. The choice of custody, insurance, and staking partners will shape the security and efficiency of treasury operations. Unlike traditional finance, digital assets require specialized expertise across domains, each with distinct risks, regulations, and operational demands that merit careful due diligence. The checklist below provides a guide on what to keep an eye out for.