As co-founder and general partner of early-stage venture capital fund Race Capital, Edith Yeung has had a front-row seat to the development of the crypto sector, particularly in Hong Kong, where she was born and raised. Notably, she was an early investor in Solana, investing $250,000 when SOL was valued at just $0.04, and was also an early investor in the Lightning Network. Since 2017, Yeung has also authored the China Internet report, an influential annual survey of technology trends in China.
Here, Yeung, who will be a speaker at Consensus Hong Kong, discusses Hong Kong’s continued development as a crypto hub, her take on China’s stance towards cryptocurrencies, what she foresees for Solana, and a big crypto prediction for 2025.
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The interview has been condensed and lightly edited for clarity.
How do you think crypto regulations will develop in Hong Kong in 2025? Do you think more crypto companies will get licenses from the SFC in 2025?
It is exciting to see that Hong Kong now has seven SFC-licensed virtual asset trading platforms. From an investor’s perspective, having a clear licensing regime is a big step forward. Regulatory clarity and predictability are like well-lit highways: they give investors the confidence to move forward without worrying about unexpected detours.
That said, the license alone is not enough. Liquidity is the other critical piece of the puzzle. Think of a commercial apron like a new highway: It may have smoother pavement and clearer signs, but if there are no cars on it, drivers won’t bother. Similarly, no matter how many licenses you have, if there is no active trading or liquidity, investors will hesitate to join.
The key for Hong Kong now is to build not only the infrastructure but also the traffic flow, because a large illiquid platform is like an empty highway that leads nowhere.
What kind of role do you think Hong Kong will develop in terms of the crypto sector, especially in relation to the US? What about Asia more generally?
Hong Kong is the New York of Asia. Exchange Square is basically Wall Street: a 24/7 financial powerhouse with towering skyscrapers and streets filled with traders, investors and bankers with an energy that never stops. If you are a cryptocurrency creator or investor, you will find many TradFi talents (traders, market makers, etc.) in Hong Kong.
To build a successful TradFi or DeFi company, you need to recruit specific types of talent that are difficult to find even in Silicon Valley. Hong Kong has a rich financial history, with stock market origins dating back to 1866 (more than 150 years), meaning there is a large pool of experienced professionals who can drive innovation and growth for your business.
What would you say is distinctive about Hong Kong/Southeast Asia in terms of cryptocurrencies compared to the US and Europe?
The United States is home to the largest cryptocurrency market in terms of institutional investors, regulators, and developers. But Asia holds the greatest growth potential for the cryptocurrency market. In 2024, half of the world’s top 10 countries ranked by cryptocurrency adoption were located in Asia.
Under the new Trump administration, the United States will continue to lead the way for cryptocurrency regulation and institutional adoption (e.g. BlackRock ETF). Asia will follow suit with its massive usage base that is young and crypto-native.
Do you think China is generally for or against cryptocurrencies? There has been a lot of crypto activity there, but at the same time, the government is officially against mining and speculation.
Hong Kong is part of China. Seeing pro-crypto regulation slowly forming in Hong Kong is a great sign and indicator for China. That said, China literally has an army of 220 million retail investors with savings worth almost $21 trillion. However, with a persistent real estate crisis and a weak economy, it is very difficult to say when China will open up to the cryptocurrency business again as the government focuses on these larger issues.
You were an early investor in Solana; Do you still have your initial investment there? Do you think Solana will continue to attract as much memecoin activity as it did in 2024?
Yes. It was an honor to meet Solana co-founders Anatoly Yakovenko and Raj Gokal and become their initial investor in March 2018. I am a long-time owner and supporter of Solana. What I love about them is their dedication to building and their support of the developer community. Developer energy at the Breakpoint 2024 conference was high not just because of memecoins.
The Firedancer team made some great technical advances last year, and I love that Anatoly continues to banter with people like Jump Trading’s chief scientist. Kevin Bowers and his team every day. Even more exciting for me is seeing traditional financial players like Fidelity, Citi and PayPal talk at Breakpoint about what they are building at Solana. This influx of established players not only validates Solana’s future but also indicates that blockchain technology is ready for the masses.
What type of companies are you currently looking to invest in and why?
I am an early investor in Huma Finance, a leader in Solana-based PayFi, and a leader in stablecoin infrastructure. In 2024, they made more than $2 billion in stablecoin transactions. At Race Capital, we will continue to focus on investing in Internet infrastructure. Builders who want to be around for the long term don’t care if it’s a bullish or bearish cycle.
What do you think will happen in 2025 that will surprise crypto people?
The establishment of a US Bitcoin reserve by the end of 2025. The United States is currently the largest holder of Bitcoin, with approximately 207,189 bitcoins. This effort will be bolstered by this huge reserve, which is now valued at more than $20 billion at current prices. This decision is expected to drive up bitcoin prices, prompting other governments around the world to follow suit.
What are you most excited to discuss on the Hong Kong stage?
Hong Kong’s role in building the cryptocurrency industry in 2025, China’s love/hate relationship with cryptocurrencies, and perhaps more thoughts on Solana.
