Digital asset funds
Independent directors for digital asset funds
Custody, DeFi exposure, on-chain settlement, token mechanics. We bring the operational fluency that traditional fund directors do not.
THE GAP
Most fund directors come from traditional finance. Digital assets change the risk.
They understand offering documents, NAV calculation, side letters, and CIMA’s fund regime. So do we.
But digital asset funds carry operational risks that sit outside traditional fund experience: custody architecture, on-chain settlement timing, DeFi protocol exposure, staking arrangements, key management, exchange counterparty risk, and the structural differences between a fund that holds tokens and a fund that uses them.
If a board does not understand these risks, it may miss what matters most.
Digital asset and tokenized funds
Our team has worked with Digital Asset Funds since 2016 and sat on the boards of some of the largest funds in this space. We also served on the first fully CIMA-regulated tokenized fund in the Cayman Islands, giving us direct experience with tokenization and its governance risks.
WHAT WE LOOK AT
The operational ground a digital asset board needs to cover
01
Custody architecture & key management
Cold and warm wallet design. Signer policies. Key ceremony documentation. Recovery and continuity. Custodian selection.
02
DeFi & staking exposure
Protocol risk. Smart contract review. Slashing exposure. Liquidity under stress. Limit and authorisation paths.
03
Token mechanics inside the fund
For tokenized funds, whitelisting, token transferability, KYC/AML, redemption mechanisms and valuation.
04
Counterparty & market structure
Exchange and OTC concentration. Thin-market manipulation. Conflicts of interest. Operational segregation between manager activities.
05
Audit & valuation
Auditor selection. Proof-of-reserves or independent confirmations. Pricing methodology for illiquid tokens. Side-pocket policies.
06
CIMA reporting & obligations
Mutual Funds Act / Private Funds Act compliance, working alongside Cayman counsel. Ongoing reporting governance.
We oversee. We do not run.
Our value to the board comes from experience and market visibility. Our directors also sit on token project and VASP boards, keeping us in active contact with the projects, exchanges, market makers and custodians that your fund interacts with. That perspective informs the questions we ask in the boardroom.
Add our digital asset experience to your board.
Questions
Common questions from fund managers
Do you take a director seat or act as INED only?
Either, depending on the fund structure and manager preference. Independent non-executive director is the most common engagement. We are deliberate about board composition fit before accepting.
Will your director be active or passive?
Active. We read the materials, ask questions and document decisions. Passive board seats are not a service we offer.
Do you work with both Mutual Funds Act and Private Funds Act vehicles?
Yes. The framework around the directorship differs, the operational fluency we bring does not.
How many fund boards does each director sit on?
We are mindful of capacity and will discuss current engagements and bandwidth before any commitment is made.
Do you provide AML services or fund administration?
Not from Hash Directors. AML, KYC, and operational services are provided by our sister firm, Provenance, which can be engaged alongside our directorship or separately.
