Ripple Spotlights Asia’s Digital Asset Leadership: Key Trends to Watch

• Ripple outlined the proactive regulatory actions in APAC, with countries like Singapore, Hong Kong, and South Korea implementing strict guidelines for crypto custody.
• Ripple’s XRP token is experiencing bullish momentum, rising 5.52% to $3.29, amid growing adoption and favorable regulatory shifts.

The adoption of crypto in Asia is accelerating through a shift in markets and progressive frameworks of regulation. As the Network Forum Asia 2024 event concluded in Singapore, Ripple outlined key developments shaping the APAC crypto space for 2025.

Ripple Highlights Rising Adoption Of Crypto In APAC

Ripple spotlighted that Asian investors are opting for digital assets as the global traditional markets record increased volatility and geopolitical uncertainty. According to Chainalysis, the CSAO region was the third biggest crypto market in the world as it received inflows of over $750 billion in assets from July 2023 to June 2024, nearly 17% of the global crypto value.

Eastern Asia, including major economies like China, South Korea, and Japan, accounts for $400 billion in cryptic transactions, making up 8.9% of the global market. In fact, nine Asian nations are ranked in the top 20 of Chainalysis’ Global Adoption Index. India tops the list, followed by Indonesia, the Philippines, and South Korea.

APAC regulators are proactively shaping clear frameworks for the custody and trading of digital assets, according to Ripple’s latest report. Singapore has updated its Payment Services Act to regulate the custody of digital assets, requiring custodians to keep at least 90% of client assets offline. 

Similarly, the Hong Kong Monetary Authority (HKMA) issued comprehensive guidelines on risk management, asset segregation, and anti-money laundering compliance. Moreover, South Korea has imposed stringent measures on the exchanges to keep 80% of the customer deposits in cold storage and partnering with licensed local banks for custody services. 

Meanwhile, the Australian government will unveil a draft crypto legislation early in 2025. It would include licensing requirements and custody guidelines. India, however, has been more restrictive as its Financial Intelligence Unit blocked the URLs of certain exchanges in 2023 due to alleged non-compliance with anti-money laundering laws.

Developments In Crypto Custody

Ripple believes that APAC will witness increasing demand for strong custody solutions for digital assets. Significant financial institutions, including DBS Bank, Société Générale Forge, and Standard Chartered, rolled out custody services. HSBC has also indicated plans to provide a custody platform for tokenized securities.

Further, experts at the Network Forum Asia emphasized the need for custodians to develop products catering to both retail and institutional clients to maximize revenues. However, expanding services to retail users may invite additional regulatory scrutiny.

In most cases, traditional banks struggle to accommodate digital asset solutions with their legacy systems. Thus, they collaborate with infrastructure providers like Ripple Custody, as highlighted in our previous article. 

XRP Price Action

Amid growing crypto adoption, Ripple’s XRP price is on a bullish run. As of writing, the XRP price was up by 5.52% to $3.29 on Monday, January 20, as netizens expect pro-crypto policies to splurge in with President-elect Donald Trump entering the White House.

This suggests that the chances of approval for a spot XRP ETF in 2025 are higher, as per our previous news story. Thus, Ripple’s native token surged to a high of $3.38 last week as market participants are bracing for increased inflows. Moreover, since the token is holding well above the psychologically critical $3 level, analysts expect further bullish momentum.