VMS Group Makes First Crypto Move with $10 Million Crypto Investment

VMS Group, a Hong Kong multi-family office managing ~$4 billion in assets, announced that it will invest up to $10 million in decentralized finance strategies managed by Re7 Capital. The allocation marks VMS Group's first entry into cryptocurrency investments.

Managing partner Elton Cheung said the firm chose to work with Re7 Capital rather than buying digital assets directly, because it operates as a digital-assets investment firm that generates yield through decentralized finance protocols and other crypto strategies.

The firm has not finalized the exact investment amount within the $10 million limit. VMS manages wealth for Hong Kong's billionaire families across property and conglomerate sectors, operating funds in internet and pharmaceutical investments. Founded two decades ago, the office concentrates on private equity and longer-duration strategies.

Cheung explained that VMS decided to diversify into more liquid investments as private equity holdings face longer exit timelines due to delayed public listings. 

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.

Hong Kong regulators have expanded crypto market access in recent months. On June 4, authorities broadened the definition of professional investors eligible to trade crypto derivatives, allowing access to futures and options on major tokens through licensed platforms.

The Hong Kong government has also piloted Chainlink's Cross-Chain Interoperability Protocol for its central bank digital currency initiative, exploring blockchain-based infrastructure applications.

Local companies begin adding digital assets to their portfolios. MemeStrategy, managed by entertainment platform 9GAG, purchased over 2,440 Solana tokens for approximately $368,000, becoming one of the first publicly traded companies in the region to buy Solana.

High-net-worth investors in Hong Kong show increased interest in digital assets as regulatory frameworks become more defined and institutional endorsements grow. The regulatory changes aim to position Hong Kong as a major crypto innovation hub in Asia.