Diogo Mónica, co-founder and president of Anchorage Digital, believes there is immense potential in Asia's institutional investors. The digital asset infrastructure provider announced a major expansion of its platform into the region on October 5.
The company chose Singapore as a jump point into the larger Asia market because it has become a hub for cryptocurrency industries and has a sturdy regulatory structure. Anchorage is currently in the process of applying to the Monetary Authority of Singapore (MAS), the city-central state's bank.
Mónica, on the other hand, believes there is tons of opportunity in the Thai, Indonesian, Japanese, and South Korean crypto markets after speaking with regulators there. However, he thinks the firm will require a more local presence.
"Right now, our approach is being regulated in Singapore because it is acknowledged as a great location by all the other regulators," Mónica says, adding that other regional regulators have "stringent, but very clear rules, which is amazing."
Anchorage provides financial institutions with infrastructure for digital asset custody, exchange, staking, and other Web3-related services.
Mónica stated that Asian institutional investors had shifted their views on crypto investments in the aftermath of the Terra ecosystem collapse.
Until recently, he said, Asia-based institutions were less concerned with asset security, preferring to focus on product features. However, in the aftermath of the crash and the subsequent sluggish crypto market, the emphasis has shifted to regulation, risk management, and continuity planning.
According to him, Anchorage already employs a team in Singapore, and clients from the region represent approximately 10% of its business. He expects that to rise to 25% in the next 12 to 18 months.
He believes that the bear market is a good opportunity to gain a foothold and develop relationships with regulators because it demonstrates the ability to attract well-established clients who are not just visitors to the space.
Mónica's most common use case for cryptocurrency in the area is cross-border remittances, borrowing, and lending. He also mentioned that mining is a prevalent use case for Bitcoin (BTC) and companies that run proof-of-stake validators.
In terms of the future, he anticipates announcements of some very large traditional firms using its technology to provide services and concentrating on stablecoins and the connectivity component that will serve as use cases for those assets.
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