Family Office: The Key Role in Web3 Investment

In recent years, family offices have been gaining popularity among high-net-worth individuals in China. Data shows that as of 2022, the number of institutions named "family office" in China has approached 10,000, more than doubling compared to the previous year, mainly concentrated in cities such as Shanghai, Shenzhen, Beijing, and Hangzhou.

At the same time, the Monetary Authority of Singapore and several authoritative institutions disclosed that by the end of 2023, the number of single-family offices registered in Singapore has exceeded 1,100, more than tripling compared to 2020. Among them, over 40% of the founders are high-net-worth families from mainland China and Hong Kong.

The rapid expansion of family offices has also brought about structural changes in asset allocation preferences. Relevant reports indicate that during 2024, the digital asset allocation of several high-net-worth individuals and family offices has increased from less than 5% to over 10%, with plans to further increase in the next 12 months. About a quarter of the surveyed family offices have invested or plan to invest in digital assets, with the Asia-Pacific region particularly leading in this area, as 37% of respondents have either engaged in or expressed clear interest in it.

For high-net-worth investors in China, family offices may be the key vehicles for entering Web3 investments. To understand why family offices have a natural fit with Web3, we need to return to the basics: what problem do family offices actually solve?

What is a "family office"?

In the world of high-net-worth individuals, family offices are regarded as the "ultimate form of asset governance." It is not a financial product, nor is it some kind of institutional service, but rather a complete set of exclusive management systems built around family wealth, or simply understood as an organizational structure that serves the family itself.

According to different management methods and service entities, family offices are further divided into the following typical types in practice:

1. Single Family Office (SFO)
2. Multi-Family Office (MFO)
3. Virtual Family Office (VFO)
4. Overseas Family Office (e.g., Singapore SFO)

Different types of family offices have their own characteristics, but their primary goal is to build a dedicated management system that can withstand cycles and adapt to intergenerational inheritance. In terms of functional design, family offices are usually constructed around the following core modules:

• Tax and Legal Structure Design
• Asset Allocation and Investment Management
• Family Governance and Inheritance Mechanism
• Daily administrative and operational support

As Web3 and crypto assets gradually enter the mainstream spotlight, family offices are also being confronted with a brand new asset structure transformation. The high volatility and high technical barriers of crypto assets seem to contradict the concept of "stable inheritance". However, it is precisely this system that emphasizes governance structures, resource allocation, and a long-term perspective that gives family offices a natural advantage in what appears to be the least compatible area.

Why "Family Office"?

Family offices can naturally align with Web3, especially in the investment pathway of assets like RWA (Real World Assets), primarily because they are governance systems born out of "complexity."

First of all, the underlying structure of RWA projects often spans regions, legal systems, and currencies. Family offices, especially those with a trust, SPV, and offshore holding chain system, are precisely the most commonly used "universal channels" for penetrating multiple jurisdictions.

Secondly, under the mainstream regulatory framework, many structured products are limited to the scope of "qualified investors." Family offices naturally possess a "compliance identity," allowing them to act as legal entities for institutional investments, as well as to undertake complex rights arrangements such as future Token issuances, revenue certificates, and tokenized equity as legally qualified investors.

Thirdly, the investment rhythm of family offices naturally aligns with the lifecycle of RWA assets. Family offices do not chase short-term returns, but are better at long-term strategies of "budget-execution-adjustment."

Fourth, family offices are not merely pure investors; they are also governance-oriented capital that can "embed participation". In projects like RWA that have governance structures, family offices not only provide funding but may also take on multiple roles, including financial auditing, custody, governance supervision, and even acting as a nominal holder.

More importantly, the intrinsic characteristics of family offices are naturally aligned with the direction of regulatory evolution that Web3 is currently promoting:

• Large capital volume, stable style
• High compliance requirements, slow decision-making.
• Clear asset preferences, predictable returns, controllable structure, clear legal framework, transparent governance

From this perspective, family offices are not "old capital" mistakenly entering the new world of Web3, but rather one of the most fitting types of long-term capital after Web3 has progressed to the stages of structuring, compliance, and value accumulation. Especially at the point where RWA is seen as the "main narrative" of this round, the entry of family offices is not on the fringe of the trend, but at its core.

Conclusion

In the past, we often said that Web3 lacks funding, channels, and awareness. However, with the involvement of family offices, these three issues are being quietly addressed by a more mature governance framework.

Whether it is a cross-jurisdictional compliance framework, a structured investment rhythm, or a composite asset management capability, family offices essentially provide not a specific product, but a capability system that adapts to long-termism.

It is precisely for this reason that it can penetrate the seemingly chaotic surface of Web3 and calmly build a bridge linking real assets with on-chain rights.

However, it is worth noting that family offices are not a one-size-fits-all solution; they have very high requirements for capital volume, governance capability, and structural sensitivity.