Because the co-founder and basic companion at early stage enterprise capital fund Race Capital, Edith Yeung has had a front-row seat on the event of the crypto sector, notably in Hong Kong, the place she was born and raised. Most notably, she was a seed investor in Solana, investing $250,000 when SOL was valued at simply $0.04, and in addition was an early investor in Lightning Community. Since 2017, Yeung has additionally authored the China Web report, an influential annual survey of expertise developments in China.
Right here, Yeung, who will probably be a speaker at Consensus Hong Kong, discusses Hong Kong’s ongoing growth as a crypto hub, her tackle China’s stance in direction of crypto, what she foresees for Solana and one large crypto prediction for 2025.
This sequence is delivered to you by Consensus Hong Kong. Come and expertise probably the most influential occasion in Web3 and Digital Property, Feb.18-20. Register at the moment and save 15% with the code CoinDesk15.
Interview has been condensed and evenly edited for readability.
How do you see crypto rules creating in HK in 2025? Do you assume extra crypto corporations will develop into licensed by the SFC in 2025?
It’s thrilling to see that Hong Kong now has seven SFC-licensed digital asset buying and selling platforms. From an investor’s perspective, having a transparent licensing regime is a significant step ahead. Regulatory readability and predictability are like well-lit roads — they provide traders the boldness to drive ahead with out worrying about sudden detours.
That stated, licensing alone isn’t sufficient. Liquidity is the opposite essential piece of the puzzle. Consider a buying and selling platform like a brand-new freeway: you possibly can have the smoothest pavement and clearest indicators, but when no automobiles are on it, drivers gained’t hassle. Equally, irrespective of what number of licenses you’ve, if there’s no lively buying and selling and liquidity, traders will hesitate to come back aboard.
The important thing for Hong Kong now’s to construct not simply the infrastructure however the visitors movement — as a result of an important platform with out liquidity is like an empty freeway going nowhere.
What sort of function do you see Hong Kong creating when it comes to the crypto sector, particularly in relation to the US? What about Asia extra broadly?
Hong Kong is the New York of Asia. Trade Sq. is principally Wall Avenue — a 24/7 monetary powerhouse with hovering skyscrapers and streets filled with merchants, traders and bankers with power that by no means quits. If you’re a crypto builder or investor, you will discover many TradFi abilities (merchants, market makers, and many others.) in Hong Kong.
To construct a profitable TradFi or DeFi firm, it’s worthwhile to recruit particular sorts of expertise which can be laborious to search out even in Silicon Valley. Hong Kong boasts a wealthy monetary historical past, with its inventory market origins relationship again to 1866 — over 150 years — means there’s a deep pool of skilled professionals who can drive innovation and development in your enterprise.
What would you say is distinctive about HK/Southeast Asia for crypto in comparison with the US and Europe?
The U.S. is dwelling to the biggest crypto addressable market when it comes to institutional traders, regulators and builders. However Asia is dwelling to the very best development potential for the crypto market. In 2024, half of the highest 10 international locations on the planet ranked by crypto adoption have been positioned in Asia.
With the brand new Trump administration, the U.S. will proceed to set the tone for crypto regulation and institutional adoption (e.g., BlackRock ETF). Asia will comply with their lead with its huge utilization base that’s younger and crypto-native.
Do you view China as typically professional or anti-crypto? There’s been lots of crypto exercise there, however on the identical time, the federal government is formally towards mining and hypothesis.
Hong Kong is a part of China. Seeing pro-crypto regulation slowly forming in Hong Kong is a superb signal and indicator for China. That stated, China actually has a military of 220 million retail traders sitting on nearly $21 trillion price of financial savings. With a lingering property disaster and a meek financial system, nevertheless, it is extremely tough to say when China will open up for crypto enterprise once more, as the federal government focuses on these bigger points.
You have been a seed investor in Solana; do you continue to have your preliminary funding there? Do you assume Solana will proceed to draw as a lot memecoin exercise because it did in 2024?
Sure. It was an honor that I bought to satisfy Solana co-founders Anatoly Yakovenko and Raj Gokal and develop into their seed investor again in March 2018. I’m a long-term Solana holder and supporter. What I really like about them is their dedication to constructing and their help for the developer neighborhood. The developer power on the 2024 Breakpoint convention was excessive not solely due to memecoins.
The Firedancer workforce made large technical advances final yr, and I simply love that Anatoly continues to be head-down geeking out with individuals like Leap Buying and selling chief science officer Kevin Bowers and his workforce daily. Much more thrilling to me is seeing conventional finance gamers like Constancy, Citi and PayPal talking at Breakpoint about what they’re constructing on Solana. This inflow of established gamers not solely validates Solana’s future but additionally indicators that blockchain expertise is prepared for the plenty.
What sorts of corporations are you presently seeking to spend money on and why?
I’m a seed investor in Huma Finance — a pacesetter in PayFi constructing on Solana and a pacesetter in stablecoin infrastructure. In 2024, they did over $2 billion in stablecoin transactions. At Race Capital, we’ll proceed to deal with investing in web infrastructure. Builders who wish to be round long-term don’t thoughts whether or not it’s an up or down cycle.
What’s one thing you assume will occur in 2025 that can shock crypto people?
The institution of a U.S. Bitcoin Reserve by the top of 2025. America is presently the biggest holder of Bitcoin, with roughly 207,189 bitcoins. This effort will probably be bolstered by this huge stockpile, which is now valued at over $20 billion at present costs. This choice is anticipated to drive up bitcoin costs, prompting different governments around the globe to comply with go well with.
What are you most excited to debate onstage in Hong Kong?
Hong Kong’s function in constructing the crypto business in 2025, China’s love/hate relationship with crypto and maybe extra insights on Solana.
