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Family offices in Asia-Pacific significantly increase wealth with crypto

Family offices in Asia-Pacific significantly increase wealth with crypto

According to the 2021 Global Family Office Report family offices in the Asia Pacific region have seen significant growth over the last year, due in part to their willingness to invest in cryptocurrencies.

The joint report, launched by the Raffles Family Office and research firm Campden Wealth, outlines how 29%  of the family offices in the region experienced far greater growth compared to the global average of 21%. The report bases its findings on 385 family offices surveyed globally, with 76 offices surveyed in the Asia Pacific region. 

Kwan Chi-man, founder and chief executive of Raffles Family Office noted that:

“The strong growth of family offices in the region is driven by the fact that Asia is creating billionaires at a pace faster than anywhere in the world, with four out of 10 new billionaires globally coming from Greater China. If you include Asia, they represent half of the world.”

Forbes’ 35th annual World’s Billionaires list included 205 new billionaires from China alone. The combined net worth of these billionaires equals $380 billion, with all but two of them being self-made.  

CEO Kwan noted how the appetitive for riskier wealth investment means that people from this region are more inclined to invest, also adding that the increased adoption of digital currencies favours this inclination:

“A few years ago, we were still arguing if cryptocurrencies are a real asset class. This year, it is agreed that cryptocurrencies and blockchain technology, as well as NFTs (non-fungible tokens), are here to stay,” Kwan said.

The latest crackdown on crypto in China will undoubtedly see long-lasting implications for crypto investors in China, who will likely be forced to liquidate their assets, and/or turn to blockchain-based investments that remain legal in the nation. 

Despite China’s crypto crackdown, crypto-based partnerships and investment in other Asia-Pacific nations is on the increase. Mastercard recently launched a global Crypto Card Programme with a recent round of partnerships with Asia-Pacific cryptocurrency companies. 

Rama Sridhar, Executive Vice President, Digital & Emerging Partnerships and New Payment Flows, Asia Pacific, Mastercard, noted:

“In collaboration with these partners that adhere to the same core principles that Mastercard does – that any digital currency must offer stability, regulatory compliance, and consumer protection – Mastercard is expanding what’s possible with cryptocurrencies to give people even greater choice and flexibility in how they pay.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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