In recent years, family offices have continued to gain popularity among high-net-worth individuals in China.
As early as 2022, according to a white paper jointly published by Swiss Re and Hurun Research Institute (2022 Trends in the Development of Family Offices in China), the number of institutions named 'family office' in China has approached 10,000, with a year-on-year growth of over 100%, mainly concentrated in cities like Shanghai, Shenzhen, Beijing, and Hangzhou.
Meanwhile, the Monetary Authority of Singapore (MAS) and several authoritative institutions (such as Bloomberg, South China Morning Post, UBS, Temasek Family Office Association, etc.) disclosed that as of the end of 2023, the number of Single Family Offices (SFO) registered in Singapore has exceeded 1,100, growing more than threefold 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 led to a structural change in asset allocation preferences.
(2024 Asian Private Wealth in Digital Assets Report) points out 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. The (2024 Global Family Office Survey Insights) report released by Citi Private Bank also shows that about a quarter of surveyed family offices have invested or plan to invest in digital assets, with the Asia-Pacific region particularly leading in this field, as 37% of respondents have engaged in or expressed clear interest in this area.
Portal Labs has also mentioned in previous articles that for high-net-worth investors in China, family offices may be the key vehicle for entering Web3 investments. However, to understand why family offices can naturally align with Web3, we must return to the starting point: what problems 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 a type of institutional service, but a comprehensive management system built around family wealth, or simply understood as an organizational structure that serves the family itself.
Based on different management methods and service entities, family offices can be further divided into the following typical types:
1. Single Family Office (SFO)
The most common type of family office, established by a single high-net-worth family, serving only the members of that family.
SFOs typically have dedicated teams responsible for asset allocation, tax planning, legal affairs, inheritance arrangements, charity management, and other dimensions. Their advantage is 'complete autonomy, comprehensive control', but the establishment and operational costs are high, suitable for ultra-high-net-worth families.
2. Multi-Family Office (MFO)
Established by professional institutions, serving multiple families, usually based on financial institutions, law firms, and trust companies to build teams.
MFO's advantages are 'resource sharing and professional services', able to cover core needs such as investment advisory, family governance, and legal structure, while reducing human and operational costs, suitable for mid-to-high-net-worth families.
3. Virtual Family Office (VFO)
Not an independent institution, but a combination of outsourced professional services, such as hiring family trust advisors, tax specialists, FA, etc., forming an external cooperation network and creating a 'lightweight' operational structure.
The advantage of VFO is 'flexibility and pay-as-you-go', suitable for families at the start-up stage of family offices.
4. Overseas Established Family Offices (such as Singapore SFO)
In recent years, a cross-border architectural path has emerged, commonly seen as high-net-worth individuals in mainland China establish Single Family Offices (SFO) in places like Hong Kong and Singapore to meet their needs in global asset allocation, tax structure optimization, and identity planning.
This type of family office typically combines domestic family members, offshore company structures, and overseas financial service resources to create customized solutions that balance regulatory compliance and a global perspective.
However, even though the types are different, the common goal is that the primary objective of family offices is not to pursue short-term returns but to build a dedicated management system that can transcend cycles and adapt to intergenerational inheritance. Therefore, in terms of functional design, family offices typically structure around the following core modules:
Tax and legal structure design. Optimize tax costs and avoid compliance risks through cross-border entities, trusts, fund structures, etc.
Asset allocation and investment management. Set long-term investment strategies and coordinate various assets such as real estate, equity, funds, and digital assets.
Family governance and inheritance mechanisms. Formulate plans for equity, dividends, inheritance, and education to ensure the continuation of family intentions.
Daily administrative and operational support. Covering 'full custody' services such as legal advice, secretarial teams, accounting services, and even health management.
However, as Web3 and crypto assets gradually enter the mainstream view, family offices are also being confronted with a brand new structural transformation of assets. High volatility and high technical thresholds of crypto assets seem to contradict the idea of 'stable inheritance'. But it is precisely this system that emphasizes governance structure, resource allocation, and long-term perspective that gives family offices a natural advantage in areas that seem least compatible.
Why 'family office'?
The reason family offices can naturally align with Web3, especially in the investment path for assets like RWA, lies in the fact that they are governance systems born for 'complexity'.
Firstly, the underlying structure of RWA projects often spans regions, laws, and currencies.
Whether through tax-exempt bonds issued in the United States or tokenized real estate under Singapore's framework, these investments involve not just cross-border payments but also the design of entry and exit paths, tax compliance disclosures, and allocation of legal responsibilities. Without corresponding legal structures or holding entities, not only is investment difficult to implement, but there may also be direct barriers due to identity, account, or tax issues. Family offices, especially those with trust, SPV, and overseas holding chain structures, are precisely the most commonly used 'universal channels' for penetrating multiple judicial jurisdictions.
Secondly, under mainstream regulatory systems such as the SEC and SFC, many structured products are limited to 'qualified investor' ranges—this is both a threshold and a protection.
Family offices naturally possess a 'compliant identity': they can serve as legal entities for institutional investments while also acting as legally qualified investors for future token issuances, income certificates, tokenized equity, and other complex equity arrangements. This compliant identity not only helps avoid the red lines limiting retail participation but is also a prerequisite for gaining the trust of project parties.
Thirdly, the investment rhythm of family offices naturally aligns with the lifecycle of RWA assets.
RWA is not a fast in-and-out transaction but an asset management process of 'construction period - operation period - exit period'. The advantage of family offices lies in the fact that they do not chase short-term returns but are better at long-term strategies of 'budget - execution - adjustment'. Compared to retail investors and traditional VCs, family offices not only accept asset lock-ups and phased exits but may even proactively cooperate with project rhythms for reinvestment and increased holdings, thus obtaining more stable rights allocations.
Fourthly, family offices are not purely contributors; they are governance-type capital that can participate 'embeddedly'.
In projects like RWA that possess governance structures, family offices not only provide funding but may also take on multiple roles including financial auditing, custody, governance supervision, and even holding entities. They deploy resources with 'family interests' at the core, are willing to invest in long-term collaborative teams, and find it easier to gain institutional authorization and collaborative division of labor from project parties.
More importantly, the endogenous characteristics of family offices are naturally close to the compliance evolution direction that Web3 is currently promoting:
Large capital volume and stable style. Family office capital typically ranges from tens of millions to several billion dollars, preferring mid-to-long-term allocations and having the capacity to endure volatility, without relying on short-term speculative returns.
High compliance requirements and slow decision-making. Family offices are generally equipped with legal, tax, and trust teams, serving as 'picky buyers' that promote compliance disclosures and clarify asset structures in Web3.
Clear asset preferences. Predictable returns, controllable structures, clear laws, and transparent governance. This is precisely the direction that emerging products such as RWA, DePIN, and fund-type tokens strive to align with.
From this perspective, family offices are not 'old capital' mistakenly entering the new world of Web3 but are precisely one of the most compatible types of long-term capital after Web3 moves toward structuring, compliance, and value accumulation phases. Especially at the node where RWA is considered 'the current narrative', family offices' entry is not on the outskirts of the trend but at its core.
Conclusion
In the past, we often said that Web3 lacked funding, channels, and cognition. However, with the involvement of family offices, these three issues are quietly addressed by a more mature governance framework.
Whether it is a cross-jurisdiction compliance structure or a structured investment rhythm and complex asset management capabilities, family offices essentially provide not a specific product but a capability system that adapts to long-termism.
It is precisely because of this that it can penetrate the seemingly chaotic surface of Web3 and calmly build a bridge linking real-world assets with on-chain rights.
However, it is worth noting that family offices are not a panacea; they have very high requirements for capital volume, governance capability, and structural sensitivity.
In the next article, Portal Labs will continue to dissect: what kind of investors are suitable for the family office path? How should a truly 'usable' family office structure be established?
*Note: Investment involves risks; please participate in Web3 under the premise of legality and compliance.