IOTA accelerates Middle East expansion with $100M foundation launch

Sygnum Bank, a digital asset bank based in Switzerland and Singapore, has conducted a survey which has identified that investors in Singapore are more interested in increasing their allocation to crypto than their international peers. The bank’s 2024 Future Finance survey states that while a global average of institutional investors of 47% plan to increase their exposure to crypto next year, in the case of Singapore-based institutional investors, 57% of them expressed the view that they would increase their crypto holdings in 2025.Photo by Precondo CA on UnsplashThe report states:  "Singapore investors exhibit a higher risk appetite and motivation to invest on average than respondents from other countries.” The annual survey, which was published on Nov. 14, collated insights garnered from more than 400 institutional and professional investors, distributed across 27 countries, with average investor experience of in excess of 10 years. 121 of the survey’s participants were based in Singapore, with the survey having been conducted during Q3 2024. Long-term confidenceSingaporean respondents suggested that they were confident in the long-term potential and outlook where cryptocurrencies are concerned. While the main reason for investing in crypto was to gain exposure to digital assets in line with a global trend (56%), 41% of respondents from the city-state cited portfolio diversification as their reason for investing in the emerging asset class.  75% of investors expressed the belief that regulatory clarity has improved recently. Growing confidence among institutional investors generally is likely to be developing due to increasing certainty relative to digital asset regulation. While Donald Trump had not been elected in the United States at the time that survey participants responded, it was looking increasingly likely that he would win the election.  That’s likely to have had a bearing on investor outlook, not just within the United States but internationally, given the implications in terms of positive regulation and an overall positive approach to crypto. 39% of Singaporean respondents cited yield-generation opportunities as their motivation in investing in digital assets. The recent advent of spot crypto exchange-traded funds (ETFs) stood out as another motivation for investors.  Breaking down specific areas of interest within the crypto sector, 71% of Singaporean respondents were interested in investment in layer-1 blockchain networks. Meanwhile, 56% expressed an interest in Web3 infrastructure investment options, with 41% showing an interest in layer-2 blockchain networks. Interest in asset tokenizationIn relation to tokenization, 47% of those surveyed in Singapore indicated an interest in tokenizing mutual funds and corporate bonds over and above other financial assets and products. When first proposed, real estate was considered the most obvious asset primed for tokenization but mutual funds and corporate bonds now appear to be gaining more traction. Asset tokenization has been garnering considerable attention in mainstream finance but especially so in Singapore. Local regulator, the Monetary Authority of Singapore, (MAS) has been running Project Guardian, a collaboration between MAS and the financial services industry with an emphasis on asset tokenization. The project recently brought in the German central bank, the World Bank, HSBC and markets infrastructure firm Euroclear as participants. 

Analysts expect crypto market cap to triple or more next yearThe Korbit Research Center, affiliated with South Korean cryptocurrency exchange Korbit, published a report last Friday that provides projections for the crypto market in 2024.The paper includes contributions from its team, notably head of research Peter Chung, as well as research analysts Choy Yoon-young, Kang Dong-hyun and Kim Min-seung.Peter Chung predicts that the total market capitalization of cryptocurrencies could soar to $5 trillion, more than three times greater than its current level of $1.6 trillion. He attributes this potential growth to three key factors: the possibility of the U.S. Federal Reserve easing its monetary policy, the potential approval of spot bitcoin and ether exchange-traded funds (ETFs), and the anticipated Bitcoin halving event expected in April 2024.Photo by Pierre Borthiry — Peiobty on UnsplashFactors driving crypto market growth in 2024Peter Chung suggests that the growth of the crypto market will be driven by the expanding utility of virtual assets. He believes that once ETFs for bitcoin and ether are approved, these cryptocurrencies will become more versatile as investment options. This, in turn, is expected to enhance their reputation and foster wider adoption, having a significant influence on the broader crypto ecosystem beyond the two most dominant cryptocurrencies.Real-world assets and financial firmsChoy anticipates that the U.S. Securities and Exchange Commission (SEC) will approve spot bitcoin and ether ETFs by the first half of next year. On a different note, Kang focuses on the importance of blockchain technology, particularly emphasizing real-world assets (RWAs) and roll-up solutions. Kang highlights that since RWAs are closely linked with traditional financial institutions, an influx of capital from these entities is likely to boost the RWA market. This interaction between traditional finance and blockchain technology could be a key driver of growth in the sector.Regulatory changes and landscape shiftKim Min-seung, another analyst from the team, forecasts that upcoming regulatory developments could alter the dynamics of the cryptocurrency market. A notable development in this regard is the forthcoming implementation of the Virtual Asset User Protection Act in South Korea, set for July next year. According to Kim, these changes might result in a scenario where only competitive cryptocurrencies survive.Kim elaborates that the perception of virtual assets is poised for a shift. Currently, crypto investors tend to base their decisions on expectations of arbitrary cryptocurrency inflation. However, once new regulations are implemented, investors are likely to start assessing the actual value of virtual assets more critically. This shift in approach could lead to a more value-driven and stable cryptocurrency market, as speculative tendencies might decrease and a focus on intrinsic value increases.According to local news outlet website The Asia Business Daily, Peter Chung anticipates further growth in the cryptocurrency market next year, following its rebound this year. He suggests that this growth trajectory will not only continue but also attract increased attention from the public.

Gemini Targets UAE Crypto LicenseGemini, the US-headquartered cryptocurrency exchange owned by the Winklevoss twins, has announced its intention to obtain a cryptocurrency service license in the United Arab Emirates (UAE). The move comes as the exchange seeks to navigate the perceived “hostility and lack of clarity” surrounding cryptocurrency regulations in the United States.In a blog post published on Wednesday, Gemini highlighted the growing interest in cryptocurrencies among UAE citizens and referred to positive interactions with UAE regulators as driving factors behind its pursuit of the license. The co-CEOs of Gemini, Cameron and Tyler Winklevoss, explained in an interview with The National that their decision was influenced by the challenges they faced with crypto regulation in the US. Gemini CEO Tyler Winklevoss expressed optimism about the regulatory environment in the UAE, stating:“We’ve been super encouraged with our conversations here with the regulators. There’s an effort to make the UAE a home and a hub for crypto and, most importantly, to enact thoughtful regulation that connects, that protects both consumers, but also a company’s ability to innovate.”Photo by Nextvoyage on PexelsAbu Dhabi or Dubai — or bothAs of now, the Winklevoss twins have not yet determined the specific location for Gemini’s operations in the UAE. They hinted that the exchange’s headquarters could be established in both Abu Dhabi and Dubai, reflecting the potential for growth and development in both cities.Gemini’s decision to pursue a crypto license in the UAE underscores the country’s growing importance in the cryptocurrency industry. With its efforts to create a favorable regulatory environment and attract crypto-related businesses, the UAE aims to position itself as a crypto hub while safeguarding the interests of both consumers and innovators.Discouraging US outlookAccording to Gemini’s Global State of Crypto Report, which provides insights into cryptocurrency adoption and usage, more than 35% of respondents surveyed in the UAE reported purchasing crypto. In contrast, only 20% of respondents in the United States said they had bought cryptocurrencies.The report also revealed that nearly 32% of non-crypto owners in the UAE expressed their intention to enter the market within the next year. Furthermore, 33% of UAE crypto holders indicated that they plan to use their digital assets for in-person purchases at physical retailers, a significantly higher percentage compared to the global average of 19%.Although still a US-headquartered business, Gemini has been turned off the US market more recently. The Winklevii twins have taken a similar stance to Coinbase’s Brian Armstrong and Ripple’s Brad Garlinghouse. Coinbase has expanded in Singapore, acquired digital asset licensing in Bermuda, and has the intention of establishing a presence in Abu Dhabi.Garlinghouse has matched Armstrong’s outspokenness in criticizing the regulatory approach to digital assets in the United States. Likewise, he has acted to place Ripple on an international footing, establishing a presence in Dubai. In April, Gemini announced the opening of an engineering center in India, together with plans to expand its base in Singapore.As Gemini proceeds with its application for the UAE crypto license, industry observers will be closely monitoring the development, anticipating the potential impact of this expansion on the exchange’s operations and the broader cryptocurrency landscape in the region.