Crypto Assets are Thriving in Asia: Institutional Investor Interest Soars

In the past week, I met with institutional investors and founders in Hong Kong and Singapore, and participated in several events, including the Hong Kong Trade Delegation, the Hong Kong Consensus Conference, and a seminar on Web3 AI.

We are actively investing in companies in the Asia-Pacific region and are seeking investors for Fund V, which is set to launch on June 30, 2025. This is a venture capital fund that invests in equity, private tokens, special opportunities, and liquid tokens. This week is packed with many thought-provoking content.

One highlight was attending an investor networking event sponsored by the U.S. Consulate. This event brought together various parties interested in investing in U.S. companies and funds, including top family offices and institutional investors.

Compared to previous years, institutional investors' attitudes towards Crypto Assets have changed significantly. Their understanding of the industry has deepened, and their interests extend far beyond mere Bitcoin investment.

Hot Topics

stablecoins and distributed physical infrastructure networks (DePin)

Stablecoins represent a trillion-dollar opportunity and are also gaining attention in Asia. Many believe that issuing stablecoins is a feasible business model that can bring profits to the issuer. In contrast, there is less interest in tokenized stocks and equity, but a strong interest is shown in the investable portions.

It is worth noting that some large financial institutions are preparing for the potential legalization of stablecoins by the U.S. Congress and plan to launch their own dollar-backed stablecoins. Currently, the annual trading volume of stablecoins has surpassed $33 trillion, exceeding the total of major credit card companies.

Many investors are showing a keen interest in how to replicate the successful growth model of the U.S. market in Asia. With our extensive network, expertise, and resources in supporting and investing in stablecoin companies, we are confident in our ability to help businesses looking to launch products in the Asian market succeed.

The DePin market is still in its early stages, but it is gradually developing with the addition of new companies. Privately, industry insiders have widely discussed its potential. I shared some trends, use cases, and success stories that showcase the immense opportunities in this field.

Artificial Intelligence (AI)

AI has always been a hot topic, especially after certain major breakthroughs. These advancements have shown many that even moderate private investment can create high-performance models without relying on public markets or massive private investments.

We have invested heavily in the AI field, supporting full-stack projects, open AI, and related market platforms. In a discussion about AI, we explored topics such as privacy, additional features consumers want to see in AI, and AI agents. In the future, everyone may have their own AI agents capable of transacting on the blockchain at internet speed. In such a future, a fivefold increase in global transaction volume is not impossible.

Many people are concerned about our positioning and layout in the AI field. Based on our investment history and firm belief in the future of Web3 AI, we are fully capable of investing in companies that have the potential for widespread global application.

AI is driving the development of more personalized services, a value-added feature that has yet to be fully explored. AI agents allow users to perform complex operations (such as cross-border payments) with simple commands, enabling Asian users to overcome the limitations of traditional financial infrastructure and more easily join the Web3 ecosystem.

laws and regulations

The cryptocurrency legislation in the United States is finally becoming clear. Recently, we highlighted how the regulatory environment has shifted from being a hindrance to a help. Considering that US regulatory agencies have recently dropped cases against major cryptocurrency companies, we are optimistic about the upcoming cryptocurrency regulations. The certainty of regulation and supportive policies are the foundation of our investment themes this year.

The opening of regulation will undoubtedly encourage U.S. Crypto Assets companies to expand into Asia, with Hong Kong likely becoming an important gateway. This trend was evident at the recent Hong Kong Consensus Conference. Since 2022, Hong Kong has been providing increasing support for Crypto Assets, launching Asia's first spot exchange-traded fund and issuing nine virtual asset trading platform licenses. Regulators are also actively listening to the voices of the industry and have expressed their willingness to support the development of the industry through future legislation.

Conclusion

This trip to Asia made me deeply feel that the confidence of investors, operators, and users in Crypto Assets is higher than it has been at any time in the past decade. They want to invest in and build more applications to address the fragmented technology issues that many rely on, which involve various aspects such as revenue, entertainment, travel, and payment. Stablecoins, AI, and legislation are the main reasons driving all parties' desire to enter the U.S. market, and we are pleased to lead this new wave as long-term participants in the industry.