Hong Kong Wealth Manager Makes Strategic Entry Into Crypto Through Re7 Capital

VMS Group, a Hong Kong-based multi-family office managing $4 billion in assets, is preparing to enter the cryptocurrency space for the first time. According to a Bloomberg report, the firm plans to allocate up to $10 million to crypto investment strategies operated by Re7 Capital, although the exact amount is still under consideration. The move signals VMS Group’s efforts to diversify its portfolio toward more liquid asset classes, as stated by managing partner Elton Cheung. “The decision is part of recent moves by VMS to diversify into more liquid investments,” Cheung said. Shifting from Illiquid Investments Cheung noted that while VMS has enjoyed success in private equity and other long-term holdings, these investments have become increasingly difficult to exit due to a growing trend of companies delaying public listings. This shift in market dynamics has influenced VMS Group’s strategy toward more agile asset classes such as crypto. Indirect Exposure Through Re7 Capital Rather than investing directly in digital tokens, VMS is opting for an indirect approach by allocating funds to Re7 Capital. The firm specializes in digital asset strategies, focusing on decentralized finance (DeFi) and other yield-generating crypto opportunities. This strategy allows VMS to gain exposure to the digital asset ecosystem while maintaining a degree of risk control. Favorable Regulatory Environment Cheung emphasized that the firm’s move is also supported by improving global regulations and rising institutional interest in the sector. “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,” he said. Hong Kong’s Regulatory Push for Crypto Hong Kong has taken active steps in recent months to encourage innovation in the digital asset space. In early June, regulators approved a framework allowing professional investors to trade crypto derivatives. Around the same time, the government reportedly began using Chainlink’s Cross-Chain Interoperability Protocol in its central bank digital currency (CBDC) research. Additionally, legislation passed in May allows the issuance of fiat-backed stablecoins by the end of the year. Growing Corporate Interest in Crypto Several Hong Kong-based firms are already adding digital assets to their treasuries. Last week, MemeStrategy—an investment firm managed by 9GAG—became the first publicly listed company in the region to purchase Solana (SOL), acquiring over 2,400 tokens for approximately $368,000. Earlier in May, DDC Enterprise, a ready-meal seller, purchased 21 Bitcoin as part of a larger plan to accumulate 5,000 BTC over the next three years. These developments reflect a broader shift among businesses in Hong Kong towards embracing crypto assets. Awaiting Comment VMS Group has yet to respond to media inquiries regarding the investment and was unreachable for comment at the time of publication.

Source: CryptoIntelligence