What is crypto treasury management

Learn to identify and understand the three key pillars of managing a crypto treasury: liquidity, funding and risk.
dashboard crypto invoices

What Is Crypto Treasury Management?

While we are on the subject of defining what crypto treasury management is, it is perhaps apt to draw some key distinctions between the how it differs from traditional finance. 

One of the main differences is that managing a fiat treasury is largely about managing banking relationships, while managing a crypto treasury is done primarily through your crypto wallet stack”, says Jean-Baptiste Chenut, CFO of Request Finance.

This is a critical

But treasury management is more than just the wallet, or custodian that holds your organization’s crypto assets. The primary goal of crypto treasury management is to oversee all the financial operations (FinOps) that support other functions like product development, marketing, and more. 

Much like how an individual might plan their own personal finances, Web3 CFOs must also ensure that their organizations’ income, and savings can meet their expenses. That includes near-term expenses such as payroll and marketing, or longer term strategic investments such as venture capital, or R&D. 

Good crypto treasury management ensures that a DAO, Foundation, or dApp team can always pay its bills.

With that end goal in mind, there are three broad scopes of responsibility for anyone managing a crypto treasury:

- Liquidity: Ensure that an organization can meet its obligations when they are due
- Funding: Managing an organization’s crypto asset holdings, and working capital 
- Risk: Mitigating operational, financial and reputational risks 

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Crypto liquidity management

What you'll learn

If money is to organizations what blood is to our bodies, liquidity management is about ensuring that there is sufficient blood in the system, and that it flows efficiently.

Ensuring liquidity is the primary goal of good crypto treasury management. Especially in bear markets, when token prices and company valuations tank, the distinction between liquidity and solvency becomes sharper.

Topics covered

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What is liquidity in crypto
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Budgeting & forecasting
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Crypto payments

Crypto funding management

What you'll learn

Raising external funding is an important subject that has been explored extensively elsewhere - from token sales, to various staking and yield farming mechanics.

Thus, this chapter focuses on two subdomains to investing a crypto treasury: (i) crypto trading & hedging, and (ii) crypto portfolio management.

Topics covered

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What is crypto funding
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Fundraising
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Trading & Hedging
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Portfolio Management

Crypto risk management

What you'll learn

Crypto treasury risk management is the practice of mitigating money-related risks in DAOs, Foundations, or any organization using crypto in its operations, or holding substantial amounts of crypto assets on their balance sheet.

This chapter will focus on how Web3 CFOs can identify and assess the different risks they may be exposed to from various treasury activities, and develop appropriate response plans ahead of time to reduce potential downsides.

Topics covered

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What is risk management in crypto
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Liquidity risk
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Market risks
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Operational & compliance risks
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Counterparty risks

Crypto Treasury Management softwares and solutions

What you'll learn

Understand the key features and benefits of a good crypto treasury management system and how it can offer visibility into organization-wide positions, automate manual processes, facilitate decision-making for internal management teams, and simplify financial reporting in crypto.

Topics covered

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What is a crypto treasury management system
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Key features & benefits
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Evaluating tools
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Crypto asset management software
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crypto portfolio management software

DAO treasury management

What you'll learn

Many of the principles and best practices of crypto treasury management discussed in previous chapters are equally relevant for DAOs.

However, there are key organizational features of DAOs that require special attention. You’ll learn how to apply these in the context of DAOs.

Topics covered

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What are DAOs
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Unique features of DAO governance
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What is DAO treasury
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Understanding DAO treasury management

Manage your crypto treasury with Request Finance

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Invoicing: pay and get paid in crypto
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Payroll: pay salaries and bonuses in crypto
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Expenses: reimburse expenses in crypto
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Real time dashboard that allows you to easily track, verify, and organize payment requests
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Accounting friendly: denominate crypto payments in fiat currency, quickbooks & xero integrations.
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150+ cryptocurrencies supported