$3 billion crypto bank Anchorage pushes into 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 over $3 billion with backers including Andreessen Horowitz and GIC, Singapore’s sovereign wealth fund. Its push into Asia shows a new direction for the company, with co-founder and president Diogo Mónica narrating Fortune that he expects Asia to represent up to 25% of Anchorage’s business within the next 18 months, with a major focus on Singapore.
“It’s an exciting market as everyone is moving away from Hong Kong and rallying around a fantastic regulator in the Monetary Authority of Singapore,” he said.
Founded in 2017, Anchorage has found a niche by working with large companies rather than private clients. As the first and only federally charted crypto-native bank, Anchorage offers a range of crypto-based services to large institutions – from banks to venture capital firms to sovereign wealth funds – such as custody, buying and selling, and generating returns through various financial instruments.
“Audit and having oversight is really important to the space.”
Co-founder and president Diogo Mónica
As traditional financial institutions continue to move into crypto, Anchorage offers an appealing service thanks to its regulatory position — something Mónica said would be harder to achieve now given the current crackdowns by US agencies, including the Treasury Department, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
“Given the crypto situation, the tone has changed because the market has changed,” Mónica said. “[Anchorage] shows that audits and having supervision are really important for the place.”
Asia is Anchorage’s first major international push. Southeast Asia in particular is a hotspot for crypto development, with three of the top 10 countries in Chainalysis’ latest global adoption index being Vietnam, the Philippines and Thailand. With many companies moving out of Hong Kong given the hostility of the Chinese government, Singapore has emerged as a hub.
Despite the country’s ascension, recent comments by Monetary Authority of Singapore chief executive Ravi Menon have raised doubts about its future. Several of the highest-profile crypto collapses have been based in Singapore, including hedge fund Three Arrows Capital and algorithmic stablecoin project TerraUSD, with Menon signaling the government needs to create more consumer protection measures.
Mónica said that because Anchorage works with businesses, not retail customers, he welcomes increased regulation.
“Compared to the US, with its regulatory infighting and turf wars, it’s a breath of fresh air to have one regulator [in Singapore],” he told Fortune. “From a tone and tenor perspective, it’s still pro-crypto, albeit more focused on consumer protection.”
