VMS Group Breaks Traditions: Is a Turning Point for Asian Family Offices?
According to reports, a multi-family office in Hong Kong that looks after the finances of some of the wealthiest families in the city is making its first foray into the cryptocurrency market. According to a Monday Bloomberg article, the company, which manages $4 billion in assets, is considering investing up to $10 million in Re7 Capital Strategies. The allocation’s exact size hasn’t been decided yet, though.
The decision is part of recent moves by VMS to diversify into more liquid investments,
VMS Group managing partner Elton Cheung
Private Equity Giant VMS Group Dives Into Crypto—But With a Twist
Although the company has achieved significant profits in private equity and other long-term investments, Cheung continued, it is more difficult to sell such holdings. Because more and more businesses are opting to remain private for extended periods of time, this is the case.
VMS Group explained the change by pointing to rising demand and a more favorable regulatory environment. Interestingly, VMS Group is opting to make indirect investments through Re7 Capital rather than making direct investments in digital assets.
We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,
Cheung
Hong Kong Embraces Crypto Innovation with Chainlink and New Regulations
Recently, Hong Kong has implemented regulations to encourage innovation in the cryptocurrency space. According to reports, the Hong Kong government was investigating prospects for its central bank digital currency project earlier this month using Chainlink’s Cross-Chain Interoperability Protocol.
As part of their strategy to increase the range of products available to these investors, Hong Kong regulators let professional investors trade cryptocurrency derivatives on June 4. By the end of the year, businesses will be able to issue stablecoins backed by fiat currencies due to a bill enacted by Hong Kong’s Legislative Council in May.
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