Home Finance Asian wealth managers seen wary of digital assets despite soaring demand

Asian wealth managers seen wary of digital assets despite soaring demand

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Representations of the Ripple, Bitcoin, Etherum and Litecoin digital currencies are seen on a PC motherboard on this illustration image, February 14, 2018. REUTERS/Dado Ruvic/Illustration/File Photograph

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SINGAPORE, June 6 (Reuters) – Wealth managers in Asia are holding again from providing digital belongings to buyers regardless of hovering demand as a result of a lack of know-how of those belongings, in line with an trade survey by consulting agency Accenture printed on Monday.

World banks have been cautiously transferring into crypto for a number of years, some constructing it inside present operations and others organising new companies.

“At present, 52 p.c of prosperous buyers in Asia maintain digital belongings of some type. Accenture’s analysis signifies this might attain 73 p.c by the top of 2022,” Accenture stated on Monday.

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“Digital belongings signify 7% of surveyed buyers’ portfolios — making it the fifth-largest asset class in Asia — greater than they allocate to foreign currency echange, commodities or collectables. But two-thirds of wealth administration corporations don’t have any plans to supply digital belongings,” Accenture stated.

The findings have been a part of Accenture’s report on the way forward for Asia’s wealth administration trade primarily based on two surveys – one in every of about 3,200 buyers and one other of greater than 500 monetary advisors at wealth administration corporations in Asia. The surveys have been accomplished in December 2021 and January 2022.

“For wealth administration corporations, digital belongings are a $54 billion income alternative – that almost all are ignoring,” Accenture stated.

“Amongst corporations’ boundaries to motion are a scarcity of perception in (and understanding of) digital belongings, a wait-and-see mindset, and – on condition that launching a digital asset proposition is operationally complicated – selecting to prioritize different initiatives,” it stated.

Southeast Asia’s greatest financial institution DBS Group (DBSM.SI) launched a standalone cryptocurrency buying and selling platform in December 2020 providing company buyers and accredited buyers crypto buying and selling companies for a lot of digital belongings. learn extra

Final month, Nomura Holdings (8604.T) stated it would create a digital asset firm this 12 months permitting institutional buyers to commerce merchandise linked to cryptocurrencies, amongst others. learn extra

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Reporting by Anshuman Daga; Enhancing by Emelia Sithole-Matarise

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