VMS Group joins growing wave of family offices investing in crypto

Hong Kong’s VMS Group, a multi-family office managing nearly US$4 billion in assets, has taken its first step into decentralised finance (DeFi) with a targeted investment of up to US$10 million, which it intends to deploy through hedge fund Re7 Capital.

“The decision is part of recent moves by VMS to diversify into more liquid investments,” said managing partner Elton Cheung in an interview with Bloomberg. He added that the firm’s traditional focus on private equity—while successful—has led to less liquidity as more companies defer listing.

Cheung highlighted that clarity in regulation and growing investor interest were key drivers:

“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 told Bloomberg

Institutional players are taking notice

VMS is not alone in venturing into crypto. Across Asia, a growing number of family offices and private banks are exploring digital assets as part of diversified wealth strategies:

• C Capital, founded by Adrian Cheng, has raised over US$500 million targeting blockchain and digital economy investments.
• Raffles Family Office partnered with Huobi Tech in launching digital asset strategies tailored for ultra-high-net-worth clients.
• The Brooker Group in Thailand, one of the earliest regional players, has publicly disclosed crypto holdings including positions in Binance Labs and various DeFi protocols.
• In Singapore, DBS Private Bank has built a proprietary digital exchange, allowing accredited clients to trade crypto under regulatory oversight.
• Julius Baer, headquartered in Switzerland but active in Asia, has also expanded its crypto asset offering in response to client demand.

These moves suggest a broader institutional shift, as firms that once shunned digital assets are now exploring structured entry points through hedge funds, custody partnerships, and digital platforms.

Hong Kong leads, but region is catching up

Regulatory clarity is a key enabler. Hong Kong’s introduction of the Type 9 + Virtual Asset (VA) license allows fund managers to exceed the 10% crypto exposure limit under conventional licensing. This has helped position the city as a regional DeFi hub.

Meanwhile, other ASEAN markets are moving at their own pace:

Hong Kong’s proactive stance—backed by its licensing framework and tax incentives—gives it an edge in luring digital-asset players. But Singapore’s institutional infrastructure and Thailand’s evolving policies make them increasingly competitive.

By allocating capital to Re7 Capital, VMS Group is not only diversifying its portfolio but also sending a signal: digital assets are becoming viable for institutional strategies. Rather than betting directly on tokens, firms are engaging specialist managers to navigate the complexity of DeFi exposure.

As frameworks mature and institutional custody solutions improve, more family offices across Asia are likely to follow suit.