According to a new report, 73% of “wealthy” investors in Asia intend to own digital assets in some form by the end of 2022. report from the consulting firm Accenture.
It is not clear how Accenture surveyed the population of a wide region or identified “wealthy” investors. What is clear is that wealthy people in Asia, like their counterparts in the US, are increasingly seeking digital assets, which can include cryptocurrencies, stablecoins, crypto investment funds, security tokens, and asset-backed tokens, to create their own assets. personal wealth.
Currently, 52% of wealthy investors in Asia already own digital assets, according to Accenture. According to a survey published by CNBC, in the US, 83% of millennial millionaires own cryptocurrency. in December.
Despite growing interest from Asian investors, most wealth management firms in the region are not yet offering digital asset offerings to clients, and two-thirds of firms do not currently plan to do so, according to Accenture.
On the other hand, many startups have emerged to meet the growing demand for crypto-currency financial services from wealthy and institutional investors in Asia. One of the most well-funded crypto asset managers in the region is Amber Group, founded in 2018 by a team of former Morgan Stanley traders. Startup got into $3 billion valuation in its fundraising closes in February and is reportedly raising a new round in $10 billion valuation. Babel is another contender for this site, which has risen in value to $2 billion in May.
While companies like Amber offer a comprehensive crypto asset platform for investors, other startups are developing the infrastructure behind crypto financial products.
Betting, for example, has become a popular way for investors to generate passive income. It works by keeping its cryptocurrencies locked in a specific network for rewards, sort of like a savings account with interest. This is because some networks, such as Ethereum, validate transactions using a “consensus mechanism” called “share proof,“removal of centralized intermediaries”.
The process of staking or placing one’s tokens on the network to prove the legitimacy of a blockchain transaction can be too technical for ordinary investors, which is why services like Singapore’s RockX have emerged to provide staking as a service to wealthy individuals and organizations. . Startup raised $6M Series A took over Amber in April and plans to include his technology in Amber’s product offering.
A year later, RockX’s assets under management rose to $1 billion from $200 million, founder and CEO Zhuling Chen told TechCrunch in May.
Chen expects demand for staking from Asian investors to rise rapidly in the coming years. He noted that many Western users have already explored the possibilities of staking, but this area is just beginning to attract attention in Asia. In the first few years after the birth of Bitcoin, Asia accounted for a significant portion of the world’s retail cryptocurrency investors, who primarily traded tokens on exchanges for short-term profits. Now that institutions and family offices in the region are increasingly looking to add crypto to their long-term portfolios, Chen said staking provides them with an investment opportunity.
Credit: techcrunch.com /