Singapore Banks Can Tap Untapped Crypto Demand
- Avaloq study highlights Singapore banks’ potential in crypto market.
- Trusted institutions can facilitate major digital asset growth.
- Potential shifts in investor assets towards regulated services.
Avaloq’s study in Singapore reveals that traditional banks can exploit a rich, unexplored demand for cryptocurrency by integrating digital asset services, enhancing their market position alongside fintech growth.
This shift may drive significant investor flows from standalone exchanges to regulated banks, affecting regional BTC and ETH markets, highlighting banking sector’s transformative role in crypto adoption.
Avaloq’s Insights on Crypto and Traditional Banks
Avaloq’s recent study indicates that traditional banks in Singapore could serve a substantial, untapped demand for crypto services. This is possible by integrating secure digital assets and leveraging their trusted reputation. Avaloq, under CEO Martin Greweldinger, suggests that financial institutions can reach new client segments through their innovative solutions. This would allow more people to access professional wealth management.
“With our innovative products and services, we enable financial institutions to scale their business efficiently, and thus reach new client segments. This provides more people with access to professional wealth management solutions, empowering them to reach their personal financial goals.” — Martin Greweldinger, Group CEO, Avaloq
Potential Shifts in Investor Behavior
The study found that 48% of non-investors in Singapore would consider crypto if offered by traditional banks. This suggests a potential shift in billions of investments towards more secure, regulated institutional frameworks. Vibhooti Chaturvedi, Regional Director at Avaloq, stated that banks adding secure crypto trading and custody can unlock a significant wave of growth for investors in trusted market conditions.
Regulatory Influence and Market Dynamics
Regulatory hesitancy from the Singapore government has impacted direct crypto growth. However, regulated bank entry is expected to shift market dynamics significantly. Historical trends show crypto ownership has risen among affluent individuals in regions like the UK and Germany. Shifting focus to traditional banks could steer significant asset flows from standalone exchanges to institutional custody.
