This study systematically examines the impact of digital finance on corporate cash holdings based on data from listed companies from 2011 to 2020 and the city level digital inclusive finance index. Research has found that digital finance significantly increases the cash holdings of corporate in the region, and in addition to coverage breadth and degree of digitization in the sub indicators of digital finance, digital payment and internet credit business in the secondary indicators will significantly increase the cash holdings of corporate. It is further found that digital finance increases corporate cash holdings through mechanisms such as increasing cash flow from operating activities, inhibiting corporate leverage ratio and reducing debt financing. In addition, for smaller enterprises with private and weak bank enterprise relationships, digital finance has a more significant impact on their cash holdings. This study enriches the economic consequences of the development of digital finance and expands the analytical framework of cash holding theory.