Asian wealth managers seen wary of digital assets despite soaring demand

SINGAPORE, June 6 (Reuters) – Prosperity administrators in Asia are keeping back again from supplying electronic assets to investors inspite of soaring desire owing to a lack of comprehending of these property, in accordance to an marketplace survey by consulting firm Accenture published on Monday.

International banks have been cautiously relocating into crypto for several years, some building it in just present functions and some others placing up new businesses.

“Now, 52 % of affluent traders in Asia keep electronic belongings of some form. Accenture’s investigation suggests this could attain 73 per cent by the stop of 2022,” Accenture stated on Monday.

“Electronic assets stand for 7% of surveyed investors’ portfolios — making it the fifth-premier asset class in Asia — much more than they allocate to international currencies, commodities or collectables. Yet two-thirds of prosperity management firms have no designs to offer digital belongings,” Accenture mentioned.

The conclusions have been part of Accenture’s report on the future of Asia’s wealth administration market based mostly on two surveys – a single of about 3,200 traders and a different of far more than 500 money advisors at prosperity administration corporations in Asia. The surveys have been completed in December 2021 and January 2022.

“For prosperity management firms, electronic belongings are a $54 billion income opportunity – that most are ignoring,” Accenture mentioned.

“Amongst firms’ boundaries to motion are a absence of belief in (and understanding of) electronic property, a wait-and-see mentality, and – provided that launching a digital asset proposition is operationally sophisticated – deciding upon to prioritize other initiatives,” it mentioned.

Southeast Asia’s largest financial institution DBS Group (DBSM.SI) launched a standalone cryptocurrency trading system in December 2020 featuring company traders and accredited buyers crypto buying and selling services for a lot of electronic property. read a lot more

Very last month, Nomura Holdings (8604.T) stated it will produce a digital asset business this year permitting institutional investors to trade items joined to cryptocurrencies, amongst some others. study much more

Reporting by Anshuman Daga Enhancing by Emelia Sithole-Matarise

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