Hong Kong's $4 Billion 'Family Office' Enters Virtual Asset Business

An ultra-large family office in Hong Kong is entering the virtual asset (cryptocurrency) business. A family office refers to a firm dedicated to handling asset allocation, inheritance and gifting, and tax issues for ultra-high-net-worth individuals.

According to Bloomberg on the 23rd (local time), Elton Cheung, a general partner at VMS Group, stated in an interview, "VMS Group plans to allocate up to $10 million to the decentralized finance hedge fund Re7 Capital." The exact allocation amount has not yet been decided.

Cheung explained, "VMS Group's private equity fund strategies have recently faced challenges in expansion," adding that "this strategy is part of VMS's move to diversify through more liquid investments."

Meanwhile, VMS Group is entering the virtual asset business by investing through Re7 Capital, rather than investing directly in volatile virtual assets such as Bitcoin (BTC), in order to limit this volatility. Re7 Capital is a company that supplies liquidity to decentralized exchanges (DEXs) and generates returns by lending stablecoins.

Ji Li, an executive at VMS Group, said, "There is very strong institutional and family interest in regulated digital asset exposure," adding, "We observed younger generations in families wanting to try something different," as the reason for entering the virtual asset business.