Ripple APAC executive predicts institutional adoption surge in 2024

KuCoin Report Points to Marked Increase in Crypto Investors in TurkeyAs part of its “Into The Cryptoverse: Understanding Crypto Users” series, Seychelles-based crypto exchange KuCoin published a report on Thursday that identifies a significant increase in the number of crypto investors in Turkey over the course of the past eighteen months.Photo by Dima Rogachevskiy on UnsplashCrypto adoption surgeThe report, the fifteenth such report produced by KuCoin as part of this series, reveals that there has been a substantial surge in crypto adoption among Turkish adults, with an impressive 52% of the adult population participating in crypto investments.Since November 2021 there has been a 12% increase in the number of crypto investors aged 18 to 60. These statistics underscore the growing interest and acceptance of cryptocurrencies in Turkey. It’s not likely to be a coincidence that this surge in adoption has come about against the backdrop of the local currency, the Turkish lira, losing more than 50% of its value against the US dollar.Here are some of the key insights that the report identified:Growing Crypto Adoption Among Turkish Adults: The survey indicates a significant upswing in the number of Turkish adults investing in cryptocurrencies. The percentage of adults embracing crypto has surged from 40% to 52% over the last year and a half, despite the overall crypto market finding itself in the doldrums within that time frame.Increased Female Participation: While male investors continue to dominate at a rate of 57%, the survey points to a notable trend of increasing participation among women, particularly in the younger age brackets. Approximately 47% of female crypto investors are between the ages of 18 and 30.Youth-Driven Growth: Younger generations are leading the crypto adoption charge, with investors aged 31 to 44 constituting the largest group at 48%. Furthermore, a significant proportion of investors under 30 joined the market within the past year, indicating the influence of youth within the crypto space.Many have expressed the view that crypto adoption will come about through the younger demographic. It’s a factor that has not gone unnoticed by crypto platforms, including fellow Seychelles-based exchange Bitget.Motivations for Crypto Investments: The report delves into the motivations behind crypto investments among Turkish adults. A substantial 58% express the desire to create long-term wealth, transcending generational boundaries. This suggests a widespread belief in crypto’s potential as a tool for financial freedom.Popular Cryptocurrencies: Bitcoin remains a favored choice, capturing 71% of overall investor interest. Ethereum follows closely with 45% interest, while stablecoins garnered the attention of 33% of surveyed participants.Crypto Trading Dominates: A significant 70% of Turkish participants use crypto for trading, indicating the prevalent use of cryptocurrencies as investment instruments. Meanwhile, 22% have ventured into buying NFTs.Influence of Personal Connections: Personal relationships play a pivotal role in driving crypto adoption in Turkey. About 57% of participants learned about crypto through family and friends, highlighting the significance of these connections in introducing newcomers to the crypto world.This finding resonates with a similar finding relative to a recently published report covering crypto adoption in Vietnam.The report has been based upon online surveys carried out by KuCoin between May 5 and May 12 of this year.

OCBC Bank Partners With ADDX to Launch Tokenized NoteSingapore’s longest established bank, OCBC Bank, has partnered with blockchain-centric private market investment platform, ADDX, to launch a tokenized equity-linked structured note.Tokenized equity-based productsThe product is significant in that it represents the first tokenized equity-linked structured note that the cornerstone bank has offered. That in itself gives an indication of how conventional finance will mesh with tokenized products as both the conventional finance system and digital assets space evolve over the coming years.An equity-linked note is a debt instrument, normally in the form of a bond. It’s distinct from a standard fixed income security as it’s a market-linked structured product. That means that it performs in sync with a particular equity stock, a basket of equity stocks or with an equity index.ADDX CEO Oi-Yee Choo elaborated on the product offering: “Structured products are designed to provide investors with unique risk and return characteristics that may not be available through traditional investments, and are an attractive option for investors weighing yield-generating options in the current economic climate.”Photo by Shubham Dhage on UnsplashLeveraging tokenizationBy leveraging tokenization, the ADDX platform realizes cost savings, cutting out counterparties from the process. Additionally, tokenization allows fractionalization of assets and financial products, making a product offering accessible to all market participants. In this particular instance, the OCDC/ADDX product is restricted solely to accredited investors.Singapore-based ADDX currently lists in excess of seventy tokenized products on its platform right now. These range from commercial paper, bonds, real estate and equities or equity-based products.On those products it has collaborated with global alternative investment product specialists Investcorp and Hamilton Lane, telecommunications giant Singtel and securities broker CGS-CIMB Securities. Additionally, it has partnered with UOB, Singapore’s third largest bank, and a number of entities owned by state-owned Singaporean investing giant, Temasek.While the conventional finance world has been skeptical of digital assets and the overarching cryptocurrency and blockchain space has had its fair share of setbacks interlaced within its progression, forward-looking TradFi players are conscious of not getting left behind. That’s reflected in the comments of OCBC Bank’s Head of Global Treasury, Kenneth Lai, in relation to the ADDX partnership:”While we already have a comprehensive stable of treasury products which includes sustainability-linked interest rate swaps, cross currency swaps, structured deposits and green bonds, it is important that we continue to innovate and find new channels for our products. We are therefore pleased to be the first Singapore bank to offer an equity-linked structured note in tokenized form on ADDX. It is the first innovation resulting from a longer-term partnership with ADDX, and we are hopeful that it will lead to more diverse product offerings that are relevant and appealing to the global accredited investor base of ADDX.”Further comments by Choo suggest that the two firms have plans to broaden the partnership to encompass a greater range of products. She referred to more structured products being in the pipeline as the duo seek to exploit their combined expertise and capabilities.As it stands today, just $0.3 trillion in global assets are currently tokenized. That number is expected to grow to $16 trillion within seven years.

The Turkish Lira (TRY) has become the third largest fiat currency by volume in the cryptocurrency market, according to a report by Kaiko. This milestone was reached as TRY's share of the crypto market hit an all-time high of 19% in early June. The increase in volume is attributed to the country's economic challenges, notably its high inflation rate, which has surpassed 70%, making the lira one of the most volatile fiat currencies globally.Photo by Afdhallul Ziqri on UnsplashFactors influencing the increaseThe shift in the Turkish lira's position in the crypto market is partly due to increased foreign exchange volatility and currency devaluation, common catalysts for cryptocurrency adoption in developing economies. Additionally, geopolitical factors such as a record number of elections and diverging monetary policies have intensified market fluctuations. This environment has favored cryptocurrencies like Bitcoin, which reached new highs against the lira in recent months. For instance, Bitcoin escalated to 2.3 million TRY in March from 979,000 TRY in October 2023. The recent adjustments in cryptocurrency trading platforms, particularly Binance's delisting of certain fiat trading pairs due to banking issues, have also increased the dominance of TRY in crypto transactions. This series of events underscores the growing interconnection between traditional and digital finance markets, highlighting the increasing role of cryptocurrencies in regions facing economic instability.