Singapore saw record levels of investment in crypto and blockchain in 2021, with US$1.48 billion transacted across 82 deals during the year, up from US$109.75 million over 26 deals in 2020, according to the Pulse of FinTech H2’21 report, published Tuesday by KPMG.
The surge in investments into crypto and blockchain also outpaced that of investments into the payments segment, which previously held the top spot in the republic.
Globally, investments in blockchain and cryptocurrencies crossed $30 million in 2021 —
shattering the previous high of $8.2 billion set in 2018 and rising more than five times
compared to the $5.5 billion in investment seen in 2020.
Overall, Singapore’s fintech industry hit a five-year high at 191 deals transacted in 2021. Total transaction value in Singapore also surged by 59% year on year at US$3.94 billion, across venture capital (VC), private equity (PE) and merger and acquisition (M&A) deals in 2021, up from US$2.48 billion in 2020.
KPMG said this was due to Singapore’s measures to boost the capital market, such as its special purpose acquisition company (SPAC) listing framework to position the country as a choice location for fast-growing companies and unicorns to go public in.
According to Anton Ruddenklau, Global Fintech Leader, KPMG International, who is based in Singapore, cryptocurrencies and blockchain are expected to remain “very hot” areas of investment in 2022, with more crypto firms looking to regulators to provide clear guidance on activities in order to help foster and develop the space.