Hivemind Capital Partners, a renowned web3 and digital asset investment firm, has recently revealed its plans to expand its operations to Hong Kong. The company has also appointed Stanley Huo, a well-experienced investment banker, as its head of Asia.
According to a press release on Tuesday, Huo brings with him over 15 years of invaluable expertise in investment banking from esteemed institutions such as China Renaissance, UBS, Citi, and BAML across Asia and Europe.
“I’m thrilled to be joining Hivemind at such a transformative period,” said Huo. “The intersection of traditional finance and burgeoning digital asset technologies in Hong Kong presents unmatched opportunities, and I’m looking forward to leading our initiatives in this vibrant ecosystem.”
Hong Kong as a Crypto Hub
Hivemind also commended Hong Kong as a major crypto hub, emphasizing the advantages of operating in the city state. The company highlighted that Hong Kong provides an ecosystem that facilitates access to traditional financial infrastructure, capital raising, and exploration of blockchain-related innovations.
“Our expansion into Hong Kong not only represents our firm’s growth, but our commitment to being at the center of financial innovation and technology,” said Matt Zhang, founder and managing partner of Hivemind. “With Stanley leading our business in Asia, we are positioned to significantly contribute to, and influence, the evolving narrative of blockchain technology and digital assets in the region.”
Hivemind recently launched a $1.5 billion investment vehicle and still has available funds to deploy. Additionally, the company introduced the Liquid Opportunity Fund, a $300 million crypto fund, earlier this year. In June, Matt Zhang confirmed securing $60 million for the fund.
Trends and Challenges in Hong Kong
Hivemind’s decision to expand to Hong Kong aligns with the growing trend of cryptocurrency firms recognizing the region’s potential and considering it for their expansion plans. Zodia Custody, a digital asset custodian backed by Standard Chartered, recently announced its launch in Hong Kong.
While Hong Kong has positioned itself as a hub for Web3 companies with recent developments such as the introduction of retail trading for licensed crypto exchanges in August, it has also faced challenges. The city recently experienced the largest Ponzi scheme in its history, involving the embezzlement of approximately $166 million from JPEX crypto exchange users. The investigation into the incident is ongoing.
“At a time when people still don’t completely understand what Web3 is, the JPEX case has created a negative impression for people in Hong Kong on digital assets and the broader Web3 industry,” said Cyrus Ip, a crypto venture investor and chief business officer at artificial intelligence start-up DreamWld Technology.
