BitGo Launches Singapore Services, Eyes Other Crypto-Friendly Regions in Asia

As an analyst with over a decade of experience in the financial sector, I find the expansion of BitGo into Singapore a strategic move that is likely to pay off significantly. The company has been operating in Asia Pacific since 2015 and has now received a local license from MAS, which allows it to offer a wider range of services for institutions. This move puts its local offerings on par with those offered in Europe and the U.S., making it a formidable player in the digital asset infrastructure market.

In simple terms, BitGo, a U.S. company that provides digital asset infrastructure for institutions, has now made its services available in Singapore, as per their announcement on Thursday.

Despite operating in APAC since 2015 and maintaining a presence in Singapore, BitGo hadn’t offered services regulated by Singapore until this year. In August, the company was granted a Major Payment Institution License (MPI) by the Monetary Authority of Singapore (MAS). This new license allows BitGo to expand its product offerings, aiming to make its local services comparable to those available in Europe and the U.S.

Beyond managing its custody and digital wallet services, BitGo has expanded to provide secure, regulated cold storage for over 1,100 cryptocurrencies. This also includes round-the-clock electronic and phone trading, immediate automated settlements, and comprehensive token management solutions.

Worldwide, BitGo currently serves more than 1,500 institutional clients across 50 nations and handles about 20% of all Bitcoin (BTC) transactions by value on the blockchain. In Singapore, the regional head of BitGo, Youngro Lee, expressed interest in catering to local institutional clients seeking regulated infrastructure services, as reported by CoinDesk.

As a researcher, I’ve observed that many establishments across Singapore and Asia have yet to fully dive into the world of cryptocurrencies. However, some traditional institutions have begun dabbling with digital assets, but their involvement has been rather constrained thus far. The majority of the crypto-related activity in Singapore appears to stem from non-traditional entities such as investment funds, venture capital firms, hedge funds, family offices, and high net worth individuals.

He expressed confidence that the market will expand significantly in the future, particularly due to upcoming U.S. elections and a global shift towards adopting digital assets, notably bitcoin. As more conventional investors and institutions express interest in digital asset services, we aspire to become one of the partners in Singapore who can facilitate these services.

Singapore has positioned itself as a serious candidate for leading the cryptocurrency sector in Asia, largely due to establishing a regulatory framework for crypto service providers back in 2019. However, even though there have been numerous applications, only 29 companies are currently listed on the Monetary Authority of Singapore’s (MAS) website as possessing a license for digital payment token services. This group also includes prominent cryptocurrency firms like Coinbase, Circle, OKX, Paxos, and Ripple.

BitGo’s Singapore team is currently compact, with fewer than twenty members as per Lee’s report. However, they anticipate expanding their local team in response to growing market demand within the next couple of years.

Beyond its Singapore-based affiliate, BitGo also conducts business in South Korea. Notably, Hana Financial Group and SK Telecom each hold a significant stake of 25% and 10%, respectively, in the local BitGo company there.

BitGo is considering growing its presence in APAC by exploring new avenues. While there are no definitive plans as of now, we are assessing various possibilities and challenges. A significant factor influencing our decisions is the regulatory landscape and how smoothly and productively we can collaborate with local authorities.

Thus far, our bond and interaction with MAS have been strong and effective, which is part of the motivation behind our decision to invest in Singapore,” he stated.