Digital Asset Treasury companies (DATs) are expected to undergo evolution rather than collapse, as noted by experts during a recent Empire podcast featuring Ethena Labs CEO Guy Young. The discussion highlighted that instead of merely issuing a one-to-one token, DATs could serve as vehicles for raising and deploying capital onchain in the traditional finance world. Young expressed that concerns about leveraging assets excessively, such as being 2x long on Ethereum within these vehicles, pose risks of liquidation. However, the current environment is seen as more transparent, with new disclosure requirements making it easier for market participants to assess potential leverage and risks associated with these vehicles—a stark contrast to the lack of transparency exhibited by numerous entities during the last market cycle. This insightful conversation suggests a more robust framework emerging for DATs, potentially leading to increased investor confidence and stability in the digital asset ecosystem.

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