A Hong Kong-based multi-family office managing wealth for some of the city’s richest families is reportedly making its first move into the crypto space.
According to a Bloomberg report on Monday, the firm—managing $4 billion in assets—is considering an investment of up to $10 million in Re7 Capital strategies. However, the final investment amount has yet to be determined.
“The decision is part of recent moves by VMS to diversify into more liquid investments,” VMS Group managing partner Elton Cheung told Bloomberg.
Cheung noted that although the firm has seen strong returns from private equity and other long-term investments, exiting those positions has become increasingly difficult as more companies choose to remain private for extended periods.
VMS Group cited rising investor interest and a more favorable regulatory landscape as key factors behind its decision to explore the crypto space.
“We felt this was the right moment given the growing demand, clearer regulatory frameworks across multiple jurisdictions, and increasing institutional support,” Cheung explained.
Importantly, VMS Group is opting to invest indirectly through Re7 Capital rather than buying digital assets directly. Re7 Capital is a digital asset investment firm that focuses on generating returns through DeFi and other crypto-based strategies.
Easing regulation
Hong Kong has recently introduced several regulatory measures aimed at promoting crypto innovation in the region.
Earlier this month, reports indicated that the Hong Kong government is leveraging Chainlink’s Cross-Chain Interoperability Protocol to explore potential use cases for its central bank digital currency initiative.
On June 4, regulators in Hong Kong approved the trading of crypto derivatives for professional investors, marking a step toward broadening the range of digital asset products available to them.
Additionally, in May, the city’s Legislative Council passed a bill that will enable companies to issue fiat-backed stablecoins by the end of the year, further solidifying Hong Kong’s commitment to becoming a hub for digital finance.
Hong Kong Firms Increasing Crypto Holdings
Hong Kong-based firms have begun incorporating crypto into their treasuries.
Just last week, MemeStrategy—an investment arm of 9GAG—became the first publicly listed company in the region to invest in Solana, purchasing over 2,400 SOL tokens for approximately $368,000.
In a similar move, DDC Enterprise, a ready-to-eat meal provider, acquired 21 Bitcoin in May as part of a long-term plan to accumulate 5,000 BTC over the next three years.
