Crypto Assets are Thriving in Asia: Institutional Investors are Highly Enthusiastic

Recently, I had a series of meetings with institutional investors and founders in Hong Kong and Singapore, and attended several important events, including the Hong Kong Trade Delegation, the Hong Kong Consensus Conference, and a seminar on Web3 AI. This week's schedule was tight but very rewarding.

It is worth mentioning that I attended a LP-GP networking event hosted by the American consulate. This event brought together numerous top family offices, institutional LPs, and GPs, showcasing a strong interest in investing in American companies and funds.

Compared to previous years, institutional investors' attitudes towards Crypto Assets have changed significantly. They have a deeper understanding of this industry, and their focus is no longer limited to Bitcoin investments.

Hot Topics

stablecoins and DePin

Stablecoins are receiving significant attention in the Asian market and are seen as a massive trillion-dollar opportunity. Many believe that issuing stablecoins can bring considerable returns to the issuers. In contrast, the appeal of tokenized stocks and equity is relatively smaller, but the investable portion is still favored.

Currently, some large financial institutions are planning to launch their own dollar-backed stablecoins after the U.S. Congress legalizes stablecoins. It is worth noting that the annual trading volume of stablecoins has exceeded $33 trillion, surpassing the total of major credit card companies.

The DePin (Decentralized Physical Infrastructure Network) market is still in its infancy but is gradually expanding. Industry insiders have privately discussed its potential extensively.

AI

AI has always been a hot topic, especially after a certain AI company made breakthrough progress. This achievement shows that high-performance AI models can be developed even without substantial financial backing.

Industry insiders have conducted in-depth discussions on AI in terms of privacy protection, consumer demand, and AI agents. In the future, everyone may have their own AI agent to conduct high-speed transactions on the blockchain. In this scenario, a fivefold increase in global transaction volume is not impossible.

AI is driving the development of more personalized services, and this value-added feature still needs to be explored in depth. AI agents can enable users to perform complex operations (such as cross-border payments) through simple commands, which will help Asian users bypass traditional financial infrastructure and directly access the Web3 ecosystem.

legislation

The cryptocurrency legislation in the United States is gradually becoming clearer. The regulatory environment is shifting from a headwind to a tailwind. The U.S. Securities and Exchange Commission recently dropped all cases against major crypto companies, which has led industry insiders to be optimistic about the upcoming cryptocurrency regulations.

The open attitude of regulation will undoubtedly encourage US Crypto Assets companies to expand into the Asian market, with Hong Kong expected to be the gateway for this expansion. This trend has been evident at the recent Hong Kong Consensus Conference. Since 2022, Hong Kong has been providing increasing support for Crypto Assets, including the launch of Asia's first spot exchange-traded fund and the issuance of multiple virtual asset trading platform licenses. Regulators are also actively listening to the voices of the industry and are willing to support the development of the industry through future legislation.

Conclusion

Currently, investors, operators, and users in Asia have reached unprecedented levels of confidence in Crypto Assets. They hope to invest in and build more applications to address the current issue of technological fragmentation, which can involve multiple areas such as revenue, entertainment, travel, and payments. Stablecoins, AI, and legislative progress are the main reasons attracting various parties to enter the U.S. market. As long-term participants in the industry, we are confident in leading this new wave of development.