Family Office: A Key Role in Web3 Investment

In recent years, family offices have been highly favored among high-net-worth individuals in China. According to industry reports, as of 2022, the number of institutions named "family office" in China has approached 10,000, more than doubling year-on-year. Meanwhile, Singapore, as an important offshore financial center, saw its single-family office count exceed 1,100 by the end of 2023, increasing more than three times compared to 2020. Notably, over 40% of the founders come from mainland China and Hong Kong.

With the rapid growth of family offices, there has been a structural change in asset allocation preferences. Multiple industry reports indicate that during 2024, many high-net-worth individuals and family offices have increased their allocation to digital assets from less than 5% to over 10%, with plans to continue increasing in the future. The Asia-Pacific region has been particularly active in the field of digital asset investment, with approximately 37% of respondents having engaged in or expressed clear interest.

So, why do family offices have a natural fit with Web3? We need to go back to the basics and understand what problem family offices actually solve.

Definition and Types of Family Offices

Family offices are regarded as "the ultimate form of asset governance" and are an exclusive management system built around family wealth. Depending on the management methods and service entities, family offices can be classified into the following typical types:

1. Single Family Office ( SFO ): Established by a single high-net-worth family, fully serving that family.

2. Multiple Family Offices ( MFO ): Established by professional institutions to serve multiple families.

3. Virtual Family Office ( VFO ): A combination of outsourced professional services that forms a "lightweight" operational structure.

4. Overseas Family Office: Establish SFOs in places like Hong Kong and Singapore to meet global asset allocation needs.

Regardless of the type, the primary goal of a family office is to build a dedicated management system that can transcend cycles and adapt to intergenerational inheritance. Its core functional modules include tax and legal structure design, asset allocation and investment management, family governance and inheritance mechanisms, as well as daily administrative and operational support.

The Intersection of Family Offices and Web3

The reason family offices can naturally align with Web3, especially in the investment path of assets like RWA, lies in the fact that they are governance systems inherently designed for "complexity":

1. Cross-border structural advantages: Family offices have trusts, SPVs, and offshore holding chains, serving as a "universal channel" that penetrates multiple jurisdictions.

2. Compliance Identity: As a legal entity and qualified investor, family offices can undertake complex equity arrangements, avoiding the red line of restricted participation for retail investors.

3. Investment rhythm alignment: Family offices are adept at long-term strategies, which naturally align with the lifecycle of RWA assets.

4. Embedded Participation: Family offices not only provide funding but can also take on multiple governance roles, deeply engaging in project operations.

In addition, the intrinsic characteristics of family offices are highly aligned with the compliance evolution direction of Web3:

• Large capital volume, stable style
• High compliance requirements, prudent decision-making
• Clear asset preferences, pursuing predictable returns, controllable structures, clear laws, and transparent governance.

Conclusion

The involvement of family offices is providing a mature governance framework for Web3, addressing various issues such as funding, channels, and cognition. It offers not only specific products but also a capability system that adapts to long-termism, enabling the construction of bridges linking real assets with on-chain rights.

However, family offices are not a panacea; they have very high requirements for capital scale, governance capacity, and structural sensitivity. Investors need to carefully assess their own conditions and design a truly "usable" family office structure when choosing the family office path.