BitGo, a U.S. digital asset infrastructure provider, has officially launched BitGo Singapore. This is exciting news! While the company has been in Singapore for several years, it now offers a wider range of services for institutions.
Earlier this year, in August, BitGo received a Major Payment Institution License from the Monetary Authority of Singapore. This license allows them to provide regulated services that match what they offer in Europe and the U.S.
Now, BitGo provides more than just custody and wallet services. They offer regulated cold storage for over 1,100 digital assets. Plus, they have 24/7 electronic and voice trading, real-time automated settlements, and full-service token management solutions.
Globally, BitGo serves over 1,500 institutional clients across 50 countries. They secure about 20% of all on-chain bitcoin transactions by value. In Singapore, they aim to meet the demand from institutional clients looking for regulated infrastructure services, according to Youngro Lee, the CEO of BitGo Singapore.
Lee pointed out that many institutions in Singapore and Asia have been slow to dive into crypto. Some traditional institutions are involved, but only in a limited way. Most of the activity comes from non-traditional institutions, like investment funds, venture funds, hedge funds, family offices, and high-net-worth individuals.
Lee believes the market will grow. With the U.S. elections coming up and the world moving toward digital asset adoption, especially bitcoin, more traditional investors will want to engage in digital asset services. They hope to be a key partner in Singapore.
Singapore is becoming a significant crypto hub in Asia. The regulatory framework for crypto service providers, introduced in 2019, has played a big role in this. However, even with hundreds of applications, only 29 companies are currently listed on the MAS website as holding an MPI for digital payment token services. This list includes well-known names like Coinbase, Circle, OKX, Paxos, and Ripple.
Currently, BitGo's team in Singapore is small, with fewer than 20 members. However, they plan to grow their local team as market demand increases over the next few years.
In addition to Singapore, BitGo operates in South Korea. There, Hana Financial and SK Telecom own 25% and 10% stakes in its local company, respectively.
BitGo is also considering further expansion in the APAC region. While they don’t have specific plans yet, Lee mentioned they’re exploring opportunities and challenges. A lot of this depends on the regulatory environment and how well they can work with regulators.
So far, their relationship with MAS has been great. This positive dynamic is one reason they decided to commit to building in Singapore.