In a significant move signaling the growing institutional adoption of cryptocurrencies in Asia, leading U.S. digital asset infrastructure provider BitGo has officially launched its suite of regulated services in Singapore. The expansion comes on the heels of BitGo receiving its Major Payment Institution License from the Monetary Authority of Singapore (MAS) in August, paving the way for the company to offer a comprehensive range of crypto solutions to institutional clients in the city-state and beyond.
Unlocking Institutional Crypto Adoption in Asia
While BitGo has maintained a presence in Singapore since 2015, the regulatory green light from MAS has allowed the company to substantially expand its offerings. Beyond basic custody and wallet services, BitGo Singapore will now provide regulated cold storage for over 1,100 digital assets, 24/7 electronic and voice trading, real-time automated settlements, and end-to-end token management solutions.
According to Youngro Lee, CEO of BitGo Singapore, the launch aims to cater to the growing demand from institutional clients in the city-state for regulated crypto infrastructure services. “Many institutions in Singapore and Asia haven’t done much [in the crypto space],” Lee noted, adding that most of the activity in Singapore has come from “non-traditional institutions” such as investment funds, venture capital firms, hedge funds, family offices, and high-net-worth individuals.
“We believe the market will grow over time, especially with the U.S. election and how the world is moving toward digital asset adoption, particularly Bitcoin. Traditional investors and institutions will want to both offer and engage in digital asset services, and we hope to be one of the go-to partners in Singapore,” Lee stated.
Singapore’s Crypto-Friendly Regulatory Landscape
Singapore has emerged as a strong contender to become a regional crypto hub in Asia, thanks in part to the introduction of a regulatory framework for crypto service providers in 2019. Despite hundreds of applications, to date, only 29 companies are listed on the MAS website as holders of a Major Payment Institution license for digital payment token services, including notable crypto firms such as Coinbase, Circle, OKX, Paxos, and Ripple.
While BitGo’s Singapore team remains small (fewer than 20 people, according to Lee), the company plans to scale up the local team as market demand increases in the coming years. BitGo also has a presence in South Korea, where local firms Hana Financial and SK Telecom hold 25% and 10% stakes in the local entity, respectively.
Eyes on Further Asian Expansion
Looking beyond Singapore, BitGo is considering further expansion into other areas of the Asia-Pacific region, although specific plans have yet to be announced. “We don’t have concrete plans yet, but we’re obviously looking at the different opportunities and challenges. A lot depends on the regulatory environment and how effective and efficient the process will be in working with regulators,” Lee explained.
“So far, we’ve had a great relationship and dynamic with MAS, and that’s one of the reasons we decided to commit to building in Singapore,” he added.
As BitGo establishes its foothold in Singapore and eyes further expansion in Asia, the company is well-positioned to capitalize on the growing institutional appetite for crypto assets in the region. With a robust regulatory framework and a growing ecosystem of crypto-friendly businesses, Singapore appears poised to become a major hub for the global crypto economy, and BitGo’s entry into the market could be a harbinger of greater institutional adoption to come.
The Road Ahead for Crypto in Asia
The launch of BitGo’s regulated crypto services in Singapore marks a significant milestone in the evolution of the digital asset landscape in Asia. As more institutional players enter the fray, the demand for secure, compliant, and efficient crypto infrastructure is set to soar. With its comprehensive suite of services and its commitment to regulatory compliance, BitGo is well-positioned to play a leading role in this rapidly evolving ecosystem.
However, challenges remain, particularly in terms of regulatory harmonization across different jurisdictions in Asia. As countries grapple with the complexities of regulating cryptocurrencies and blockchain technology, there is a risk of fragmentation and inconsistency, which could hinder the growth of the industry.
Despite these challenges, the potential for crypto to revolutionize finance and drive economic growth in Asia is immense. As more institutional investors embrace digital assets, and as regulatory frameworks mature, the stage is set for a new era of innovation and disruption in the region’s financial sector.
For BitGo and other crypto infrastructure providers, the road ahead is filled with both opportunities and obstacles. But with a strong focus on compliance, security, and innovation, these companies are well-equipped to navigate the complexities of the Asian crypto market and help drive the industry forward.
As the crypto landscape in Asia continues to evolve, one thing is clear: the future of finance is digital, and those who embrace this reality will be best positioned to thrive in the years ahead. With its launch in Singapore, BitGo has taken a significant step forward in this journey, and the rest of the industry will be watching closely to see what comes next.
