A Shift in the Balance of Power

For much of the past decade, the crypto conversation has been dominated by the West. New York became the home of Bitcoin ETFs, Silicon Valley incubated blockchain startups, and Brussels introduced MiCA, the first comprehensive digital-asset regulatory framework. But as the industry matures, the center of gravity is beginning to shift.

This October, Singapore will hosting TOKEN2049, with organizers expecting more than 25,000 participants from over 160 countries. Billed as the largest Web3 event of the year, it represents more than just another conference. It is a signal that the epicenter of crypto innovation may be moving east. The question now is whether this momentum reflects a temporary trend or a deeper structural shift in the global industry.

Singapore’s Advantage: Clarity in an Uncertain World

Singapore’s ability to attract global players rests heavily on the way its regulators have chosen to engage with crypto. Unlike jurisdictions that oscillate between enthusiasm and hostility, the Monetary Authority of Singapore (MAS) has taken a deliberate, measured approach. In August 2023, MAS finalized a regulatory framework for stablecoins. It laid down strict requirements on reserves, redemption timelines, and transparency. This was not intended to limit innovation but to build confidence that stablecoins could genuinely function as reliable mediums of exchange.

Two years later, in June 2025, MAS went further. It began enforcing licensing for all Digital Token Service Providers (DTSPs), including those that only serve overseas clients. For global firms, this sent a powerful message: if you want to operate out of Singapore, expect to play by clear and enforceable rules. Yet at the same time, these rules were not suffocating; they created a predictable operating environment.

By contrast, the U.S. continues to wrestle with conflicting interpretations of crypto assets. The SEC treats many tokens as securities, while the CFTC often insists they are commodities. Lawsuits and enforcement actions dominate the headlines, leaving both institutions and startups unsure of where the line is drawn. Europe, meanwhile, has made progress with its Markets in Crypto-Assets (MiCA) regulation, but implementation has been slow and fragmented. Member states are uneven in their readiness, and the full framework will not be fully harmonized until at least 2026.

Against this backdrop, Singapore offers something that is increasingly rare in the crypto industry: clarity. And in a sector where trust and predictability are often in short supply, clarity itself is a competitive advantage.

Asia as a Gateway of Innovation

Asia is not just following global trends—it is increasingly setting them. The Asia-Pacific region is the world’s largest gaming market, generating hundreds of billions in revenue annually. This dominance translates naturally into Web3 experiments in gaming and the metaverse. Although investment flows into Web3 gaming slowed in 2025 compared to the frenzy of 2024, developers in Japan, Korea, and Singapore remain at the forefront of integrating NFTs and token economies into mainstream entertainment.

Beyond gaming, Asian central banks are actively exploring new forms of digital money. The Bank of Japan is conducting a CBDC pilot that examines wholesale use cases such as interbank settlements. The Bank of Korea has expanded its experiments to retail scenarios, exploring how a digital won could work for everyday payments. These initiatives are not just academic—they represent a region preparing for real-world adoption of digital currencies.

Singapore benefits directly from these trends. Its geographical location positions it as a gateway between East and West, while its reputation for financial stability gives it credibility. For startups and investors, Singapore offers a unique vantage point: the ability to tap into Asia’s fast-moving innovation while still operating under globally respected regulatory oversight.

Capital Follows Clarity

Capital is always pragmatic. It flows where opportunities exist and where risks can be understood. This is why the clear regulatory stance in Singapore is translating directly into investment. Coinbase and Circle, two of the most recognizable names in crypto, both secured Major Payment Institution licenses from MAS in 2023. Their presence gives the market confidence that Singapore is not a peripheral experiment but a core hub in the global digital economy.

Local institutions are equally committed. DBS, Singapore’s largest bank, has built its Digital Exchange (DDEx), which offers tokenized securities and trading for accredited investors. Ripple, another licensed player, has deepened its engagement in the city-state, using Singapore as a launchpad for regional initiatives. Most importantly, MAS itself is actively coordinating pilots under Project Guardian—a program that includes giants such as JPMorgan and SBI Holdings. These pilots explore tokenized funds, FX, and bonds, providing a real-world testing ground for blockchain in mainstream finance.

The combination of foreign players, local champions, and government-led pilots demonstrates why Singapore is attracting institutional capital. It has become a laboratory for the financial system of the future.

Lessons from TOKEN2049

TOKEN2049 serves as both a showcase and a signal. With more than 25,000 participants expected, the event is designed to draw global attention. But beyond its sheer scale, the themes on the agenda tell us where the industry is heading.

Tokenization remains a dominant narrative. Banks and fintechs are actively piloting tokenized assets, ranging from funds and bonds to private equity stakes. The idea that real-world assets can be fractionalized, traded, and settled on blockchain is moving from theory into practice. For institutional investors, this represents a massive efficiency gain and the potential to unlock new markets.

Decentralized finance (DeFi) is also evolving. Where early DeFi protocols were criticized for their lack of compliance and susceptibility to hacks, a new generation is emerging with risk management features and compliance modules built in. The goal is to create DeFi that is institution-friendly—products that can coexist with, rather than undermine, traditional finance.

Another theme is sustainability. Singapore is investing in initiatives such as Project Greenprint, which uses blockchain to support ESG reporting, and Climate Impact X, a marketplace for carbon credits. These projects connect the crypto sector with broader environmental and social goals, a necessary step if blockchain is to align with global capital markets that are increasingly ESG-driven.

Risks on the Road Ahead

Yet no shift comes without risks. Singapore’s strength—its proactive regulatory approach—also carries the risk of becoming too restrictive. Regulators must constantly update rules to stay ahead of fraud and money laundering while ensuring they do not choke off innovation. The balance is delicate, and getting it wrong could blunt the very momentum Singapore is building.

Geopolitics adds another layer of uncertainty. As the U.S. and China continue their rivalry, technology and finance are key fronts in their competition. Singapore’s neutral stance makes it attractive, but it also places it in a delicate position. Finally, market volatility remains an ever-present factor. Crypto prices can surge and crash within weeks, testing the resilience of both regulators and institutions.

A Multipolar Future

So, is the future of crypto moving East? The evidence suggests the balance of power is shifting, and Singapore is leading that transformation. Yet the picture is not binary. The United States and Europe remain vital to the ecosystem. Their markets, regulations, and institutional investors will continue to shape crypto’s trajectory. What we are witnessing is not a complete transfer of power but the emergence of a multipolar system.

In this system, Singapore, Dubai, and Hong Kong rise alongside New York, London, and Frankfurt. Each hub brings its own strengths: regulatory innovation, capital flows, technological development, or market depth. This diversity makes the global crypto landscape more resilient and dynamic.

At Galahad, we see Singapore’s rise as a strategic inflection point. Just as New York defined global finance and Silicon Valley defined technological disruption, Singapore may come to define the institutional and sustainable era of crypto. For investors, entrepreneurs, and policymakers, the signal is clear: look East, or risk being left behind.