Bullish sentiment on digital assets expected to continue in 2025

Some observers see pro-crypto Trump administration spurring innovation

- Claire Huang

If the last six weeks are anything to go by, the bullish sentiment on digital assets will likely charge on into the new year and last for a while, be it in prices of cryptocurrencies, adoption or innovation.

Market players cite US President-elect Donald Trump's election win as a key catalyst for the promising outlook from investors and the global crypto industry, notwithstanding some long-existing issues such as the lack of interoperability between networks.

Some observers also think the pro-crypto Trump administration will spur innovation and expansion of areas in digital assets such as tokenisation and payments, which will benefit Singapore's ecosystem.

Mr Saad Ahmed, who heads exchange Gemini's Asia business, said developments in the US often set a precedent that can inspire regulatory innovations in other markets.

The appointment of a pro-crypto US president could encourage Asia-Pacific markets such as Singapore and Hong Kong to come up with more innovative financial products and refine their regulatory frameworks to drive adoption, he said.

And the US developments could help America catch up with more mature crypto markets like Singapore, where regulatory clarity has driven innovation, said Mr Julian Sawyer, chief executive of Standard Chartered-backed custodian Zodia Custody.

With greater regulatory clarity in the US, established players in the global ecosystem can tap the American market, said Mr Lim Wee Kian, chief executive of DBS Digital Exchange, or DDEx.

He said this could then pave the way for greater cross-border collaboration, and at the same time, widen the pool of eligible assets to be tokenised and put on the blockchain.

Crypto payment firm Triple-A's CEO Eric Barbier said Singapore and the wider region will have more opportunities to collaborate with US-based players and attract investments, as a result of the expected developments in the US.