Digital asset platform Anchorage Digital today announced that it has expanded into Asia with five institutional partners, including Thailand-based crypto exchange Bitkub and blockchain investment firm FBG Capital is headquartered in Singapore.
Anchorage is valued at more than $3 billion with backers including Andreessen Horowitz and GIC, Singapore’s sovereign wealth fund. Its push into Asia shows a new direction for the company, with co-founder and president Diogo Monica saying Luck that he expects Asia to represent 25% of Anchorage’s business over the next 18 months, with a focus on Singapore.
“It is an interesting market as people are leaving Hong Kong and putting together a great regulator within the Monetary Authority of Singapore,” he said.
Founded in 2017, Anchorage found a niche by working with larger businesses than retail customers. As the first and only federally rated crypto-based bank, Anchorage offers a number of crypto-based services to large institutions — from banks to venture capital firms to private equity firms. Sovereign financial funds — such as custody, buying and selling and generating profits through various financial instruments.
“Testing and monitoring is really important for the space.”
Co-Founder and President Diogo Monica
As traditional financial institutions continue to shift to crypto, Anchorage offers an attractive offering thanks to its regulatory position — something that Monica says will be harder to achieve now due to current repression by U.S. agencies, including the Treasury Department, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
“With crypto conditions, the tone has changed because the market has changed,” said Monica. “[Anchorage] demonstrate that audits and oversight are indeed important to the space. ”
Asia is Anchorage’s first major international push. Southeast Asia in particular is a hotspot for cryptocurrency development, with three of the top 10 countries in Chainalysis’ recent global adoption index being Vietnam, the Philippines, and Thailand. With many companies moving out of Hong Kong due to hostility from the Chinese government, Singapore has emerged as a hub.
Despite the country’s rise, recent comments of the Monetary Authority of Singapore Chief Executive Officer Ravi Menon has cast doubt on its future. Some of the most famous crypto crashes have been based in Singapore, including hedge fund Three Arrows Capital and algorithmic stablecoin project TerraUSD, with Menon signaling that the government needs to create more protections for people more consumption.
Monica said that because Anchorage works with businesses, not retail customers, he welcomes increased regulation.
“Compared to the US, with the infighting between regulators and the battles on the pitch, having a governing body is a breath of fresh air. [in Singapore],” he said Luck. “From a tone and tone perspective, it remains pro-crypto, albeit with a greater focus on consumer protection.”
