What is crypto treasury management

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

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 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.

Web3 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 web3 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

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.
What is liquidity in crypto
Budgeting & forecasting
Crypto payments

Crypto funding management

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.
What is crypto funding
Trading & Hedging
Portfolio Management

Crypto risk management

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

Crypto Treasury Management softwares and solutions

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

DAO treasury management

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

Manage your crypto treasury with Request Finance

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