Even though the cryptocurrency market is volatile and there are worries about the whole market, a new analysis shows that Asia Pacific is a good place for crypto companies to grow.
In fact, a study called “Emerging Giants in Asia Pacific,” which was done by the Canadian accounting firm KPMG and the international bank HSBC, says that a quarter of all businesses in the region are related to crypto because the use of fintech is growing quickly and “considerable interest has also shifted to cryptocurrencies.”
Blockchain firms, especially non-fungible token (NFT) and decentralized finance (DeFi) startups, were the most common of the top 20 industrial subsectors. From the 6,472 participants, the analysis found that 1,130 were becoming NFT giants and 650 were becoming DeFi mammoths.
According to the research, some of the new blockchain players are Sky Mavis, a Vietnamese company that makes NFT games, Dunamu, which runs a crypto exchange in South Korea, and Hyperchain, a Chinese company that makes distributed ledgers.
With these results, the NFT and DeFi subsectors have beaten domains like electric vehicle (EV) charging infrastructure, quantum computing, robotic process automation, tiny satellites, Internet of Things (IoT) security, and others.
Getting more people to use cryptocurrencies
The study looked at 6,472 technology-focused businesses worth up to $500 million in 12 important markets, including Mainland China, India, Japan, Australia, Singapore, South Korea, Hong Kong (SAR), Malaysia, Indonesia, Vietnam, Taiwan, and Thailand. Company leaders were also interviewed.
In fact, the research showed that the Asia-Pacific region is using digital assets more and more.
“At the moment, trading in cryptocurrencies is illegal in Mainland China, but the use of cryptocurrencies has grown in Hong Kong Special Administrative Region (SAR) and Singapore, as well as in a number of developing economies, such as India and Vietnam.”
According to the “2021 Chainalysis Worldwide Crypto Adoption Index,” the number of crypto transactions has increased eight times since last year, and they now make up 14% of all global transactions.
The paper says that this led to the birth of two crypto unicorns:
“As a result, two unicorns, Amber Group in Hong Kong and Matrixport in Singapore, were created. Both of these companies offer crypto financial services.”
Mainland China has the most companies that are getting big fast
The analysis found 10 great “Emerging Giant” companies in each of the 12 areas looked at, as well as five startups that had the potential to become “unicorns,” or private startups worth more than $1 billion.
Most of the 6,472 companies found are from Mainland China, which makes up 32.8% of the total (30.1 percent). Japan comes in third with 12,7% of these kinds of businesses.
It remains to be seen if Mainland China’s position as the leader in technology innovation in the region will change the way its government views crypto and convince it to lift the ban on trading and mining Bitcoin and other cryptocurrencies (BTC).