Anchorage, a $3 billion crypto bank, is being set up in Asia

Anchorage, a $3 billion crypto bank, is being set up in Asia

Digital asset platform Anchorage Digital announced today that it has expanded into Asia with five institutional partners, including Thailand-based crypto exchange Bitkub and Singapore-based blockchain investment firm FBG. Capital.

Anchorage is valued at more than $3 billion with backers such as Andreessen Horowitz and GIC, Singapore’s sovereign wealth fund. Its push into Asia shows a new direction for the company, co-founder and chairman Diogo Monica said Condition that it expects Asia to account for up to 25% of Anchorage’s business over the next 18 months, with a focus on Singapore.

“It’s an exciting market as everyone is moving away from Hong Kong and converging around one incredible regulator in the Monetary Authority of Singapore,” he said.

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Founded in 2017, Anchorage found a niche working with large corporations rather than retail clients. As the first and only federally licensed crypto-local bank, Anchorage provides a range of crypto-based services to large institutions – from banks to venture capitalists to sovereign wealth funds – such as custody, l buying and selling, and generating returns through various financial services. tools.

“Audits and monitoring are really important for space.”

Co-Founder and President Diogo Monica

As traditional financial institutions continue to dabble in crypto, Anchorage offers an attractive service thanks to its regulatory position, which Monica says would be more difficult to achieve now given the current crackdown by US agencies, including the Treasury Department, the Securities and Exchange Commission books and exchanges, and the Commodity Futures Trading Commission.

“Given the crypto conditions, the tone has changed because the market has changed,” Monica said. “[Anchorage] shows that audits and monitoring are really important for the space.

Asia is Anchorage’s first major international push. Southeast Asia in particular is a hot spot for crypto development, with three of the top 10 countries in Chainalysis’ recent Global Adoption Index being Vietnam, the Philippines, and Thailand. With many businesses leaving Hong Kong due to the hostility of the Chinese government, Singapore has become a hub.

Despite the country’s rise, recent remarks by the chief executive of the Monetary Authority of Singapore, Ravi Menon, have raised doubts about its future. Several of the most high-profile crypto busts are based in Singapore, including hedge fund Three Arrows Capital and algorithmic stablecoin project TerraUSD, with Menon signaling the government needs to create more consumer protections.

Monica said that because Anchorage works with businesses, not retail customers, it welcomes the increased regulation.

“Compared to the United States, with its infighting between regulators and turf wars, it’s a breath of fresh air to have a regulator [in Singapore],” he said Condition. “In terms of tone and content, it’s still pro-crypto, albeit more focused on consumer protection.”

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