Singapore has unequivocally cemented its position as the on-chain powerhouse of Asia, a comprehensive new report has found, showcasing an unwavering commitment to Web3 innovation bolstered by a proactive, albeit stringent, regulatory stance and a thriving ecosystem.
The Singapore THE ONCHAIN STATE 2025 REPORT lays bare the city-state’s ambition to participate in and lead the global decentralised revolution, even as challenges related to regulatory navigation and access to traditional financial arteries persist.
The Monetary Authority of Singapore (MAS) emerges as the central orchestrator, adopting a “strict, but fair” collaborative methodology towards the Web3 domain. This partnership is evidenced by a significant surge in digital payment token (DPT) licenses, with a combined 28 licenses granted in 2023 and 2024, a substantial leap from the mere 10 issued in 2022.
This forward-thinking regulatory environment has cultivated increasing trust among Singaporean enterprises, which is highlighted by DBS Bank’s foray into cryptocurrency options trading and structured notes for institutional investors.
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Furthermore, data from blockchain analytics firm Chainalysis reveals a record-shattering near-US$1 billion in stablecoin payments processed within a single quarter, underscoring Singapore’s burgeoning on-chain economic activity and greater trust from institutional investors.
The pulse of crypto ownership beats stronger within Singapore, with 26 per cent of residents holding digital assets in 2024, a rise from 24.4 per cent in 2023. Notably, 73 per cent of these owners have maintained their crypto assets for over a year, signifying a maturing market geared towards long-term investment.
While Bitcoin (62 per cent) and Ethereum (43 per cent) remain dominant portfolio staples, the emergence of xSGD (6 per cent ownership) signals a growing inclination towards stablecoins pegged to the local currency. Crypto’s utility is also expanding, with 52 per cent of holders now employing it for transactions, particularly among Millennials and Gen Z for retail and bill settlements.
As Eric Barbier, CEO of Triple-A, aptly puts it, “crypto is moving beyond adoption to real-world use, shaping the future of digital payments”.
Despite the global crypto rollercoaster, Singapore’s Web3 ecosystem remains steadfastly focused on “Buidl,” with a robust 40.3 per cent of projects dedicated to infrastructure development. This strong foundational layer underpins the growth of Decentralised Finance (DeFi at 18.4 per cent) and the rapidly expanding Non-Fungible Tokens and Gaming sectors (NFTs and Gaming at 13.8 per cent).
The venture capital landscape remains a critical enabler, constituting 13.8 per cent of the ecosystem. While overall Web3 funding in Singapore trailed behind the broader fintech sector in 2023, the ratio of deals in Crypto to Fintech maintained a strong 68.12 per cent, surpassing the 2021 figure of 60 per cent. In the first half of 2024, Singapore-based Web3 companies attracted a substantial US$742 million in investments, representing 64 per cent of the capital invested in the FinTech sector during the same period.
Singapore’s allure as a global Web3 nucleus is further amplified by its dedication to nurturing talent and offering globally competitive compensation packages. An estimated 2,433 individuals are currently employed within the sector, and over 75 per cent of local Web3 enterprises have declared their intent to expand their Singapore-based teams in 2025, with 60 per cent projecting an expansion of 50 per cent or more of their existing workforce. Web3 compensation routinely surpasses national benchmarks across various roles, attracting a skilled and adaptable workforce. The strategic acquisitions of Singaporean Web3 startups – such as Jupiter’s acquisition of Solana.FM and Coinhall, and Nansen’s acquisition of StakeWithUs – serve as irrefutable validation of the local ecosystem’s maturity and global recognition.
However, the report unflinchingly highlights persistent pain points voiced by Web3 builders. These include the pressing need for greater regulatory clarity, particularly concerning the definition of digital assets, to facilitate innovation within legal boundaries.
The high cost of compliance, especially concerning the demanding and expensive process of obtaining DPT licenses, is identified as a significant barrier, particularly for smaller and newer entities. The limited access to traditional banking services remains a critical impediment, affecting 59 per cent of respondents and hindering operational stability.
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Furthermore, a perceived lack of tailored government support compared to other global hubs, a strong desire for more inclusive regulatory collaboration, and a call for more accessible and clearly defined sandboxing opportunities are underscored as areas requiring urgent attention.
Despite these significant headwinds, Singapore’s unwavering commitment to fostering a symbiotic relationship between the public and private sectors, coupled with its robust talent pipeline, strategic geographical advantage, and vibrant community, firmly positions it for sustained dominance in the global Web3 arena. The city-state’s proven ability to attract major international Web3 events like TOKEN2049 and Solana Breakpoint further solidifies its reputation as a crucial global hub for innovation, investment, and talent.
As the Web3 industry continues its transformative trajectory, Singapore’s proactive, adaptive, and collaborative approach will be paramount in maintaining its competitive edge and firmly establishing its legacy as the undisputed on-chain state of Asia.
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