Traditional Banks Could Unlock Singapore’s Untapped Crypto Demand, Study Shows

Singapore's cryptocurrency adoption lags behind regional financial centers despite strong investor interest, with traditional banks positioned to bridge the trust gap preventing broader digital asset participation, according to new research from financial technology provider Avaloq.

The study found that 26% of Singaporean investors currently hold crypto assets, trailing the UAE (39%), Switzerland (37%), and Hong Kong (30%). Only 17% of Singapore investors access cryptocurrency through their traditional financial services provider, highlighting a significant opportunity for established institutions.

Singapore's position as a regional financial hub makes its crypto adoption patterns particularly significant for broader Asian market development, with traditional banks potentially serving as catalysts for mainstream digital asset acceptance.

The research identifies a clear pathway for increased adoption: nearly half (48%) of Singaporean non-crypto investors indicated they WOULD invest in digital assets if offered through their existing financial services provider. This suggests traditional banks' trusted relationships could overcome current market hesitation.

"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, regional director for South Asia and Australia at Avaloq.