In the fast-evolving world of digital assets, few voices carry the weight of both traditional finance expertise and cryptocurrency innovation quite like Eugene Ng. With nearly 15 years of experience spanning global investment banks, fintech startups, and leading cryptocurrency projects, Ng has witnessed firsthand the transformation of digital assets from fringe investment to institutional mainstay.
The Evolution of Institutional Interest
"When I first spoke with institutions six months ago, the response was very lukewarm. It was 'we'll take a look when we have some time,'" Eugene Ng recounted in a recent interview. "Fast forward today, they're actually sending us a lot of inquiries. It's all inbound. So that's really a 180-degree change."
This dramatic shift in sentiment mirrors broader industry trends. Recent reports indicate that more than three-quarters of surveyed institutional investors plan to increase their allocations to digital assets in 2025, with an estimated 83% set to expand their crypto holdings. For Ng, who co-founded DWF Labs, a leading high-frequency trading and market-making firm in digital assets, and OpenEden, a platform focused on real-world asset tokenization, this institutional awakening comes as no surprise.
"I think we have come to the inflection point where it's not just a penny sort of asset class. It's more than just a token right at this moment," Ng observes. His unique vantage point comes from having navigated both worlds—from trading derivatives at Barclays, Deutsche Bank, and Citibank to spearheading business development for Matrixport, a leading crypto bank spun off from mining giant Bitmain.
From Skepticism to Strategy
Ng illustrates this institutional evolution with an anecdote about a former colleague at a large organization who was initially met with resistance when attempting to introduce digital asset initiatives. "The poor guy, there [were] a lot of career risks especially during Covid times. You don't want to be the guy who tries to push an initiative that may sound pretty crazy in times like this," Ng explains.
Yet, as major players like Square and PayPal entered the crypto arena, C-suite executives began asking the crucial question: "What's our digital asset strategy?" The once-ignored colleague found himself suddenly in demand. "Today, he's getting so many people, even guys who are more senior than him, send him emails requesting for his time," Ng shares. "He's become from a not so popular guy in the firm to a very popular guy—almost a celebrity status."
This anecdote reflects a broader reality: what was once considered fringe is now central to financial innovation strategies. With his experience at OpenEden, where he helped grow assets under management by close to $150 million in just twelve months, Ng understands the practical challenges of implementing digital asset strategies within institutional frameworks.
Regulatory Clarity: The Foundation for Growth
Through his work obtaining the registered fund management license from the Monetary Authority of Singapore (MAS) and the Bermuda Digital Asset Business Act (DABA) license for his ventures, Ng has become intimately familiar with the regulatory landscape shaping institutional adoption.
"Singapore has some very thoughtful regulations around cryptocurrency," Ng notes. "It has always been a very pivotal role in Asia, driving a very thoughtful way of paving for regulated firms to operate."
This perspective aligns with industry data identifying regulatory clarity as the top catalyst for growth in the digital asset sector. Emerging frameworks like the EU's Markets in Crypto-Assets (MiCA) are providing clearer pathways for institutional participation, something Ng has championed throughout his career.
"Gemini, being a regulated exchange... the ethos of Gemini really is to work with regulations. We like regulations. We welcome that," Ng explained during his time leading Gemini's business development in Asia Pacific. This regulated approach resonates strongly with institutions, who cite regulatory uncertainty among their primary concerns when considering digital asset investments.
Beyond Bitcoin: The Expanding Digital Asset Universe
While Bitcoin remains the gateway cryptocurrency for many institutions, Ng sees a broader digital asset ecosystem emerging. "With bitcoin's success and a great marketing grand for cryptocurrency as an asset class, it has generated a positive spillover to the other tokens," Ng observes.
His perspective encompasses three key narratives shaping the future of institutional digital asset adoption:
- Decentralized Finance (DeFi): "I think that's a great use case and that's such a promising space. It's really breaking down the whole centralized finance narrative." Industry data supports this view, with institutional engagement in DeFi expected to triple to nearly 75% in the next two years.
- Non-Fungible Tokens (NFTs): "That is such a great narrative. I think it's going to gain a lot of momentum." Ng sees these digital representations of unique assets as part of a broader transition to a fully digital economy.
- Top-Tier Token Concentration: "You will start seeing greater inflow of money coming to these top five tokens because institutions come in, they will likely buy the top five tokens and then subsequently look into the others."
This perspective is particularly significant given Ng's experience spearheading key partnerships with traditional financial giants like Standard Chartered Bank's Zodia Custody, State Street, Bank of New York Mellon, and Moody's Ratings while at OpenEden.
The Practical Concerns of Institutional Investors
Having managed relationships with more than 700 projects across the digital asset space at DWF Labs, Eugene Ng intimately understands the practical concerns that institutions face when entering this market. He identifies three primary questions that institutional investors consistently raise:
- Custody Solutions: "One of the things that they really want to figure out is the custody of the assets—who exactly hold[s] these assets." The departure from traditional securities infrastructure creates uncertainty that must be addressed through robust institutional-grade custody solutions.
- Asset Diversification: "What else besides bitcoin? What else can I invest besides bitcoin?" Institutions are increasingly exploring the broader digital asset landscape, including stablecoins and tokenized assets.
- Security and Compliance: "How secure are you guys? Do you guys actually have compliance policies in place? How do you look at KYC/AML?" These fundamental operational questions remain paramount for institutional participants.
Bitcoin as Gold 2.0: Digital Scarcity and Portfolio Diversification
Perhaps most interestingly, Ng positions Bitcoin not as a competitor to traditional assets like gold but as a complementary store of value with unique properties. "I think Bitcoin is the better version of gold. It is the gold 2.0. Its digital scarcity, its portability and its divisibility—these [are] three things that gold does not have."
This perspective speaks to the broader theme of portfolio diversification driving institutional interest. With traditional 60-40 portfolio splits challenged by negative bond yields, Ng suggests that "having a small allocation whether there is 0.1% to 5%, it all makes sense."
He encourages institutions to approach digital assets with a long-term perspective: "If you're going to be buying bitcoin, look at it as a generation of bet. Look at it as a long term investment. If it stretches on the chart over 10 years, that volatility is just a small blip in the chart."
The Path Forward: Adoption with Prudence
As institutions continue their journey into digital assets, Ng offers three key principles for responsible engagement:
- "Buy only as much as you're willing to lose, never invest more than you should, never take a leverage on the type of crypto that you buy."
- "Have a long-term perspective. If you are buying today hoping for a 50% increase in price, bitcoin is not the right investment for you."
- "Ensure that you are safekeeping your assets in a very safe and secure manner."
These principles reflect Ng's balanced approach to digital asset adoption—embracing innovation while managing risk prudently.
With his unique background spanning traditional finance and cryptocurrency innovation, Eugene Ng offers a valuable bridge between these worlds. As institutional adoption of digital assets accelerates, his perspective provides a roadmap for navigating this transformation—looking beyond short-term market cycles to the fundamental technological and financial innovations reshaping our economic landscape.
