Citywealth Quick Insight Series on Digital Assets Trends – Joe David, Nephos Group & MYNA
This week’s Citywealth Quick Insight Series on Digital Assets Trends is dedicated to Joe David, Founder of Nephos Group & MYNA.
What’s your current assessment of the digital asset market, and how is macroeconomic or regulatory uncertainty affecting sentiment among private wealth clients?
The digital asset market has matured significantly, even with a backdrop of global economic uncertainty. We’re seeing a more cautious but increasingly sophisticated investor base across the UK, UAE, and South Africa. Private wealth clients are no longer chasing hype, they’re asking deeper questions around custody, tax implications, reporting, and long-term value. Regulatory clarity remains uneven across jurisdictions, but the overall direction is positive. Most of our clients now view digital assets as a legitimate part of a diversified strategy rather than an experimental play, and we’re helping them structure this in a compliant, transparent way.
How are recent policy changes in the U.S., EU, or Asia influencing crypto adoption or caution in the private client space?
Global regulatory shifts are having a clear ripple effect on client sentiment. In Europe, MiCA has created a more defined framework, giving confidence to wealth managers and family offices. The UAE continues to lead the way with forward-thinking regulation that encourages innovation while maintaining compliance, something we see reflected in client appetite here. Clearer policy in major markets ultimately helps our clients make better-informed, cross-border decisions.
What role are digital assets currently playing in the portfolios of HNWIs and family offices – speculative, hedging, or strategic?
For most of our clients, digital assets now serve a strategic and opportunistic purpose rather than a purely speculative one. A growing number is using crypto as a way to protect their wealth from inflation and currency devaluation, especially in emerging markets. Allocations remain modest, typically 1-5% of portfolios, but they’re now part of a considered, long-term strategy. At Nephos and MYNA, we focus on helping clients hold and account for these assets securely, with the right reporting and structuring in place to support future growth.
How are wealth managers integrating crypto and blockchain-based products into diversified portfolios for their clients?
We’re seeing a shift from direct token exposure to structured, regulated products such as crypto ETPs, blockchain-focused funds, and tokenized assets. Wealth managers are working with trusted custodians and compliance partners to ensure security and reporting standards match those of traditional assets. Education remains a major part of this integration process, advisors need to understand both the risks and the unique opportunities blockchain brings to wealth management.
Are there specific tokens, protocols, or segments (DeFi, stablecoins, real-world assets) that you see gaining traction among private investors in 2025?
Real-world asset (RWA) tokenization is the standout trend. The ability to tokenize equity, debt, or property and bring liquidity and transparency to traditionally illiquid markets is hugely appealing. Stablecoins also continue to gain traction as on-and off-ramps into the digital economy become more efficient. DeFi is maturing, clients are more comfortable with institutional-grade platforms offering yield and credit opportunities within compliant frameworks.
How do you see the evolution of ESG frameworks and sustainability intersecting with blockchain and digital assets?
Blockchain is becoming a key tool for transparency and traceability in ESG reporting. At Nephos Group, we’re already exploring how blockchain-based accounting and audit tools can improve data integrity in sustainability reporting. The conversation has moved beyond environmental impact, it’s now about how technology can enhance accountability across supply chains and investment portfolios. With proof-of-stake and other energy-efficient systems now dominant, digital assets are increasingly compatible with responsible investment principles.
What are the key risks private clients should be aware of in crypto markets — and how can advisors mitigate them?
The main risks remain custody, counterparty exposure and regulatory shifts. Advisors can mitigate these by working exclusively with regulated service providers, ensuring proper due diligence on exchanges and custodians, and implementing robust security practices. Education is again critical, clients should understand the volatility and technological nuances before allocating capital. Diversification within digital assets also helps reduce risk concentration.
Have expectations changed in terms of custody, access, or transparency in crypto wealth management solutions?
Absolutely. Institutional-grade custody is now a non-negotiable for private clients. They expect the same level of security, reporting, and transparency they get from traditional financial institutions. Multi-signature solutions, segregated accounts, and real-time visibility into holdings are standard requirements. There’s also a greater emphasis on regulatory compliance and auditability, especially among trustees and fiduciaries.
In what ways are you seeing private banks or trustees adapting to the inclusion of digital assets in estate planning and fiduciary conversations?
Private banks and trustees are beginning to formalise their approach to digital assets. We’re seeing more estate planning documents including clear provisions for crypto holdings and access protocols. Education is key here as well, understanding how private keys, wallets, and smart contracts fit into legal structures. Trustees are becoming more open to holding digital assets under professional custody, which represents a major shift from just a few years ago.
What innovations or infrastructure developments (e.g. tokenization, ETFs, compliance tools) do you believe are most important to the future of crypto in private wealth?
Tokenization is the single most transformative innovation, it’s bridging the gap between traditional finance and blockchain. The introduction of spot Bitcoin and Ethereum ETFs has also opened the door to regulated exposure within private wealth portfolios. Beyond investment, we’re most excited about the evolution of on-chain compliance, accounting, and tax-reporting tools. These are what will make digital assets manageable, auditable, and scalable within regulated wealth management, aligning perfectly with the services we provide at Nephos Group and MYNA.
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Key Takeaways
- The digital asset market matures amid economic uncertainty, with private wealth clients seeking deeper understanding rather than chasing hype.
- Recent regulatory frameworks, like MiCA in Europe, boost confidence among wealth managers and encourage cross-border decisions.
- Digital assets serve a strategic role in portfolios, helping clients hedge against inflation, with allocations typically at 1-5%.
- Wealth managers integrate crypto through structured products and emphasize education on risks and unique opportunities.
- Tokenization stands out as a transformative innovation, bridging traditional finance and blockchain, while on-chain compliance tools are crucial for future growth.
Estimated reading time: 6 minutes
A. Greater market maturity, improved regulation and a shift toward long-term strategic use rather than speculation.
A. Increasingly important. Clear rules in regions such as Europe and the UAE are giving clients confidence and improving cross-border decision making.
A. Custody, regulatory change and counterparty risk. Working with regulated providers and strong reporting frameworks is essential.
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