The Rapid Development of Crypto Assets in Asia

In the past week, I met with institutional investors and founders in Hong Kong and Singapore, and attended multiple 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 seeking interest in Fund V, which is set to launch on June 30, 2025. This is a venture capital fund that invests in venture equity, private tokens, special opportunities, and liquid tokens. This week's schedule is tight, with many thought-provoking contents.

Participating in the Hong Kong trade delegation activities is a major highlight, which includes an LP-GP networking reception. Top family offices, institutional LPs, and GPs attended this wonderful event, bringing together parties interested in investing in American companies and funds.

Compared to previous years, institutional investors' interest in Crypto Assets has undergone a significant change. They have a deeper understanding of the industry, and their areas of interest have far surpassed Bitcoin investments.

Topics of Interest

stablecoin and DePin

Stablecoins represent a trillion-dollar opportunity and are equally attractive in Asia. Many believe that stablecoins are viable, and they think that issuing stablecoins can allow the issuer to generate profits. There is not much interest in tokenized stocks and equity, but there is significant interest in the investable portion. We have invested in multiple stablecoin projects.

Now, some large financial institutions are preparing to launch their own dollar-backed stablecoins after the legalization of stablecoins in the U.S. Congress. The transaction volume processed by stablecoins has exceeded $33 trillion annually, surpassing the total of major credit card companies.

Investors are particularly curious about how we can replicate the growth achieved in the U.S. market in Asia. With our extensive network, expertise, and resources in supporting and investing in stablecoin companies, we can help businesses launching products in the Asian market succeed.

The DePin (Distributed Physical Infrastructure Network) market is still in its infancy and is gradually developing with the addition of each new company. There has been extensive discussion about its potential in private.

I reviewed the trends, use cases, and success stories, including some of the companies we invested in, to showcase the opportunities within.

AI

AI has always been a hot topic, especially after certain significant breakthroughs. These advancements have opened doors for many, indicating that high-performance models can be created with moderate private investment, without having to rely on the public market and massive private investments.

We have invested heavily in this field, funding full-stack projects, open AI, and related markets. In discussions with industry insiders, we talked a lot about issues related to privacy, additional features consumers want in AI, and AI agents. Perhaps in the future, each of us will have our own agents to trade on-chain at internet speed. In that future, a fivefold increase in global trading volume is not unreasonable.

People are often interested in our positioning and exposure in the AI field. Based on our investment history and our ongoing belief that Web3 AI is the future, we are fully capable of investing in companies that will be widely adopted globally.

AI has widely driven more personalization, a value-added feature that has yet to be deeply explored. AI agents allow users to perform complex operations (such as cross-border payments) with simple commands, enabling Asian users to bypass traditional financial infrastructure and join the Web3 ecosystem.

Legislation

The legislation in the United States is finally starting to become clearer. We recently emphasized how regulation has shifted from headwinds to tailwinds. Given that U.S. regulators have recently dropped all cases against major Crypto Assets companies, we are very optimistic about the upcoming regulation of Crypto Assets in the U.S. Regulatory certainty and supportive governance for Crypto Assets form the foundation of our investment theme this year.

The opening of regulation will undoubtedly allow American Crypto Assets companies to expand into Asia, with Hong Kong serving as the gateway. This momentum was visible to everyone at last week's 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 licenses for virtual asset trading platforms. Regulators are also actively listening and are willing to support the industry through future legislation.

Conclusion

The confidence of Asian investors, operators, and users in Crypto Assets is higher than it has been at any time in the past decade. They hope to invest in and build more applications to address the fragmented technologies many rely on, which can bring income, entertainment, travel, and payments. Stablecoins, AI, and legislation are the fundamental reasons everyone wants to enter the U.S., and I am excited to lead this new wave as a long-term steward of the industry.