Schroders, a massive global asset manager, launches a digital assets division in Singapore.
Asset management giant Schroders has announced the launch of its Global Digital Assets Centre of Excellence in Singapore, a move that underscores the city-state's leadership in digital asset innovation.
With assets under management (AUM) of £758bn / $1 trillion, Schroders joins a growing list of traditional finance firms embracing digital assets, including BlackRock, Fidelity International, Franklin Templeton, UBS, and Wellington, who have already launched public tokenized funds.
Meagen Burnett, Schroders' Chief Financial Officer, emphasized the importance of embracing new technologies to serve the next generation of clients. She stated that digital assets are transforming asset management in two distinct ecosystems: the existing financial ecosystem and the new digitally native ecosystem.
Schroders' centre of excellence is focused on navigating both digital assets and technology in the existing world while exploring opportunities in the new digitally native ecosystem. The centre will be housed in Singapore due to several strategic reasons.
Firstly, Singapore offers a vibrant fintech ecosystem that supports digital asset innovation. This environment provides the ideal platform for Schroders to develop and scale digital solutions, aligning with its goal to modernize asset management through digital innovation.
Secondly, Singapore's regulatory framework and participation in tokenization sandboxes, such as Project Guardian, offer a conducive environment for experimentation and innovation. This allows Schroders to engage in tokenization trials and explore new financial models like Variable Capital Companies for fund tokenization.
Thirdly, Singapore's prominence in digital asset and tokenization innovation made it a strategic choice for Schroders. The city-state's leadership in this area allows Schroders to leverage existing infrastructure and expertise to drive its digital asset strategy forward.
Fourthly, by setting up in Singapore, Schroders aims to engage with global policymakers and contribute to the development of best practices in digital assets. This engagement is crucial for navigating the evolving regulatory landscape and ensuring compliance with emerging standards.
Lastly, Asia's continued leadership in digital asset innovation provides Schroders with access to a growing market and opportunities to develop personalized, agile investment solutions at scale.
Schroders' move follows a similar one made by fellow fund manager Northern Trust in Singapore. The firm has also partnered with Calastone, a UK fund distribution platform, in 2023 for fund tokenization, and has explored tokenizing insurance-linked securities (ILS) on a public blockchain through Schroders Capital, another arm of the asset manager.
In the Project Guardian trial, Schroders aimed for retail reach, automation, and personalization. The firm also plans to contribute to knowledge sharing through partnerships with local universities.
The launch of Schroders' centre of excellence is likely to result in Schroders launching a public tokenized fund offering, a move that could further solidify Singapore's position as a global hub for digital asset innovation.
- Schroders, with assets under management of £758bn, joins several traditional finance firms like BlackRock and Fidelity International in exploring the digital asset market, particularly tokenized funds.
- Meagen Burnett, Schroders' CFO, believes digital assets are transforming asset management across two distinct ecosystems: the traditional financial ecosystem and the digitally native one.
- Singapore's vibrant fintech ecosystem and conducive regulatory environment, including participation in tokenization sandboxes like Project Guardian, motivated Schroders to establish its Global Digital Assets Centre of Excellence in the city-state.
- By setting up in Singapore, Schroders aims to engage with global policymakers, contribute to the development of digital asset industry best practices, and navigate regulatory complexities.
- Schroders plans to use Singapore's leadership in digital asset innovation, along with its partnerships with local universities and Calastone, to launch a public tokenized fund and develop scalable, personalized investment solutions for Asia's growing digital asset market.
