In a significant move for the digital asset industry, leading US infrastructure provider BitGo has officially launched its regulated services in Singapore. The expansion comes after the company secured a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS) in August, enabling it to offer a comprehensive suite of products to institutional clients in the city-state.
Bringing Institutional-Grade Crypto Services to Singapore
While BitGo has maintained a presence in Singapore since 2015, the MPI license allows the firm to significantly expand its offerings. Institutional clients can now access regulated cold storage for over 1,100 digital assets, 24/7 electronic and voice trading, real-time automated settlement, and sophisticated token management solutions.
According to BitGo Singapore CEO Yunro Lee, the company aims to capitalize on the growing demand from institutional players in the city-state for regulated crypto infrastructure services. Lee noted that while some traditional institutions have dabbled in digital assets, their involvement has been limited thus far.
“We believe that the market will grow over time, especially considering the elections in the US and how the world is moving towards digital asset adoption, particularly Bitcoin. More traditional investors and institutions will want to both offer and participate in digital asset services, and we hope to become one of the go-to partners in Singapore.”
– Yunro Lee, CEO of BitGo Singapore
Singapore’s Emerging Role as a Crypto Hub
Singapore has emerged as a serious contender for the role of Asia’s regional crypto hub, thanks in part to the introduction of a regulatory framework for digital asset service providers in 2019. Despite hundreds of applications, only 29 companies currently hold an MPI license for digital payment token services, according to the MAS website.
This exclusive group includes prominent crypto players such as Coinbase, Circle, OKX, Paxos, and Ripple. As more institutional investors and traditional financial institutions seek exposure to digital assets, the demand for regulated crypto services in Singapore is expected to grow.
Eyeing Further Expansion in Asia
BitGo’s Singapore launch is part of a broader strategy to expand its presence in the Asia-Pacific region. The company already has operations in South Korea, where local firms Hana Financial and SK Telecom hold 25% and 10% stakes in the local subsidiary, respectively.
Looking ahead, BitGo is considering further expansion in other parts of Asia-Pacific, although specific plans have yet to be announced. According to Lee, much depends on the regulatory environment and the effectiveness of the process of working with regulators in each jurisdiction.
“So far, we’ve had great relationships and great momentum with MAS, and that’s one of the reasons why we decided to build in Singapore.”
– Yunro Lee, CEO of BitGo Singapore
The Future of Institutional Crypto Adoption
As digital assets continue to gain mainstream acceptance, the role of regulated infrastructure providers like BitGo will become increasingly critical. By offering institutional-grade services and adhering to stringent regulatory standards, these firms help bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies.
BitGo’s expansion into Singapore represents a significant milestone in the ongoing development of the digital asset ecosystem in Asia. As more jurisdictions establish clear regulatory frameworks for cryptocurrencies, it is likely that other leading crypto firms will follow suit, setting the stage for increased institutional adoption and the continued growth of the industry as a whole.
With its strategic location, pro-business environment, and forward-thinking approach to digital asset regulation, Singapore is well-positioned to become a major hub for cryptocurrency innovation and investment in the years to come. BitGo’s launch in the city-state is a testament to this potential, and a harbinger of the exciting developments that lie ahead for the crypto industry in Asia and beyond.
