Valkyrie Vies To Manage Crypto Companies’ Treasuries

Digital asset investment firm Valkyrie is out to help cryptocurrency companies manage their balance sheets.

Valkyrie has launched a protocol treasury management service that will help companies in the crypto space handle cash flow management, advanced reporting and other services, the company announced Wednesday.

“Treasury management becoming the norm is the natural evolution of a rapidly growing industry,” Leah Wald, CEO of Valkyrie Investments, said. “It was inevitable that someone would offer it, and we’re excited to be the first to do so.”

Companies in the blockchain space often work with funds in the hundreds of millions, Wald said, and offloading financial management tasks will be an ongoing trend as the space continues to grow. 

“[Treasury management] enables founders and developers to work on what they do best, building and expanding, while outsourcing financial matters to experienced money managers,” Wald said.

“Projects who choose to work with a fiduciary to oversee their assets build even more trust with their communities, backers and outsiders because they bring a level of transparency and rigor to this process that others may not have considered.” 

The first protocol to partner with Valkyrie on its treasury management offering is NEM/Symbol, two layer-1 protocols that announced their merger in 2021 with a $700 million token treasury. Treasury management has been a challenge for the NEM Protocol in the past, which is one of the reasons for the merger, according to reports. The NEM Foundation was just one month away from running out of funds when it was restructured according to a forum post from January 2019.

“Throughout the course of our discussions with their core team, it became clear that they and many other founders and developers are spending far too much time worrying about managing money, and it takes away from their ability to effectively lead and expand at the pace they’d like,” Wald said.

The launch of the new service comes shortly after Valkyrie became the second issuer to list a futures-based bitcoin ETF in the US, which helped the company secure $1 billion in assets under management earlier this month.

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