Swiss Bank UBS reports that China's wealth office overseas allocates 5% to crypto

• Asian family firms are raising crypto allocations with plans to invest up to 5% portfolio.
• In-facility transactions in Hong Kong and South Korea are rising as new ETFs and custody services gain traction.
• Developer activities in Asia are growing rapidly as more investors explore advanced crypto strategies and tools.

Family offices across Asia are significantly increasing their exposure to digital assets. Some of them plan to allocate up to 5% of their portfolios to cryptocurrencies. This trend is gaining momentum in Singapore, Hong Kong and mainland China. Wealth managers are submitting more inquiries as interest increases from wealthy individuals.

Exchanges in the region report rising trading volumes. New Crypto Funds are also seeing strong inflows. In Singapore, NextGen Digital Venture has raised over $100 million for the new Crypto Equity Fund, which launched in May. UBS reports that Chinese family offices are behind the shift, with second and third generation members promoting adoption.

Facility transactions will benefit the ground

Hong Kong and South Korea lead institutional activities. The Hash Key Exchange in Hong Kong saw its user base rise by 85% year-on-year by August 2025. The top three South Korea exchanges reported a 17% increase in trading volume this year. According to Cryptoquant, average daily turnover rates rose by more than 20%. Earlier in the year, Hash Key Exchange supported Hong Kong's SFC roadmap and is in line with its growth strategy.

New ETF approvals are also boosting market activity. Hong Kong approved six spot Bitcoin and ether ETFs in April 2024. These products have attracted attention from agencies and family offices. In South Korea, regulators are preparing to approve the first spot Crypto ETF. The administration is also working on a stablecoin framework to win.

Moving from retail to professional use

Until recently, the adoption of cryptocurrency in Asia was driven primarily by retail investors. The pattern is changing. According to chain dissolution data, between mid-2023 and mid-2024, there was a $750 billion inflow in the CSAO region. Most transactions were under $10,000 and focused on transactions, remittances and obligations.

Currently, East Asia shows a different trend. Professional and institutional investors lead the activities. South Korea received $130 billion in code during that period. Traders use arbitrage and Altcoin strategies. In China, wealthy citizens are turning to OTC and P2P platforms as traditional markets struggle.

Developer Growth Supports Expansion

Developer activities in Asia are also rapidly increasing. The region currently accounts for 32% of active crypto developers, up from 12% in 2015. Approximately 41% of new Crypto developers come from Asia. This growth supports local innovation and helps family offices pursue more complex investment strategies.

Singapore remains an important hub. Its merchant service processed nearly $1 billion in crypto payments in the second quarter of 2024. Stablecoins are increasingly used in daily retail transactions. Exchanges and asset companies report an increase in institutional demand for custody, arbitrage, and structured crypto strategies. Family offices are moving from passive holdings to more advanced portfolio management.