VMS Group, a multi-family asset management company valued at nearly $4 billion, is preparing to invest in cryptocurrency, leveraging Hong Kong's pro-crypto regulatory framework.
VMS Group will allocate up to $10 million into digital assets through strategies managed by Re7 Capital, a decentralized finance (DeFi) hedge fund based in London.
Eton Cheung, Managing Partner at VMS, stated: 'We believe now is the right time, as market demand continues to rise and clear legislation is emerging across key jurisdictions.'
Cheung noted that the amount of investment is still under discussion, but the company sees increasing trust in the sector due to institutional recognition and regulatory support.
Why is VMS investing in cryptocurrency right now?
This move reflects VMS's broader strategy to diversify into more liquid assets. Previously focused on private equity and long-term investments, the company has faced challenges exiting illiquid assets—prompting the firm to explore the cryptocurrency market for better liquidity and returns.
Hong Kong's developing cryptocurrency regulations: A magnet for global investment
Hong Kong is quickly becoming a center for cryptocurrency investment thanks to progressive-minded policies. Key developments include:
New cryptocurrency regulations encourage innovation while protecting investors
Central Bank Digital Currency (CBDC) issuance plan
Allows companies to launch stablecoins backed by fiat currency by the end of the year
Retail access to regulated cryptocurrency products, lifting previous restrictions
Implementing robust risk management protocols
These measures have attracted numerous international companies and restored investor confidence in Hong Kong's digital asset space.
Hong Kong's progressive stance on cryptocurrency is attracting attention. As the city builds a secure and supportive ecosystem, renowned asset management firms like VMS Group are leading the way. Their potential $10 million investment in DeFi signals a new era of cryptocurrency adoption among Asia's elite financial institutions.