Banks Hold the Key to Crypto Adoption
A new Avaloq study reveals that while crypto interest is booming in Singapore, traditional banks hold the decisive role in unlocking the next wave of digital asset adoption.
Singaporean investors are showing strong curiosity about digital assets, but adoption still lags behind regional peers.
According to a new Avaloq study, 26 percent of investors in Singapore already hold crypto – a lower share compared with the UAE (39 percent), Switzerland (37 percent), and Hong Kong (30 percent). Only 17 percent invest via their existing financial services provider.
Trust Is the Missing Link
The findings underline a clear opportunity for banks: almost half, 48 percent, of Singaporean non-crypto investors would be willing to buy crypto if offered through their trusted bank.
«Investor interest in crypto is high across the region, yet adoption is tempered by a lack of knowledge and low trust in existing exchanges», said Vibhooti Chaturvedi, Avaloq's Regional Director for South Asia and Australia at a media briefing on Wednesday in Singapore.
«By strategically integrating secure crypto trading and custody into their service portfolios, banks can unlock the next significant wave of digital asset growth,» he added.
Barriers Hold Back Adoption
Knowledge gaps and trust issues remain the biggest roadblocks. Nearly 46 percent of non-investors cite lack of knowledge as their main concern, 37 percent worry about volatility, and 33 percent distrust existing exchanges.
Traditional financial providers are uniquely placed to overcome these hurdles by offering secure and reliable services.
Wealth Management Must Evolve
Avaloq’s research stresses that long-term success in wealth management depends on a one-stop approach, where traditional assets and digital ones are seamlessly integrated.
Banks and wealth managers that add crypto custody and trading to their platforms stand to gain new growth opportunities.
Tech-Ready Singapore
Singapore’s wealth management landscape is primed for innovation. Local investors are among the most loyal globally, but they demand speed, trust, and access to new asset classes.
Notably, 93 percent of wealth professionals in Singapore believe artificial intelligence will benefit the industry, and 61 percent of investors are comfortable receiving AI-assisted advice – compared to 52 percent globally.
«Understanding their needs and meeting these expectations will be essential to retain investors’ trust and loyalty», Chaturvedi said.
ESG and Impact Investing on the Rise
The study also points to a growing focus on sustainable and impact-driven portfolios. ESG investing jumped globally from 55 percent to 63 percent, with Asia seeing a leap from 41 percent to 67 percent.
The combination of ESG’s rising importance and demand for trusted pathways into digital assets cements both trends as strategic imperatives for the wealth industry.
