Coinbase's Singapore Move Intensifies Hong Kong's Crypto Competition for Asia's Firms

Coinbase's expansion into Singapore marks a pivotal moment for the crypto industry in Asia, as the exchange partners with Standard Chartered to launch Coinbase Business, a platform tailored for startups and small-to-medium enterprises (SMEs). The service enables real-time Singapore dollar transfers and instant settlements using stablecoins like USDC and XSGD, positioning the city-state as a critical hub for integrating digital assets into mainstream commerce. This move represents Coinbase's first international business venture beyond the United States and underscores growing institutional confidence in Asia's crypto ecosystem.

Singapore's regulatory framework has long attracted fintech innovators, but its competition with Hong Kong has intensified in 2025. Hong Kong has gained an edge by offering clearer guidelines for stablecoins and virtual asset trading, along with incentives like grants for blockchain projects. These policies have drawn over 20 licensed crypto platforms to the city, including major treasury operations and Web3 firms, according to a Blockchain Magazine report. Meanwhile, Singapore's cautious, step-by-step approvals have slowed progress in areas like stablecoin licensing, pushing some companies to explore alternatives. Despite this, Singapore remains a global fintech leader, with strengths in talent density and regional connectivity.

The broader crypto market has also seen momentum this year, partly driven by macroeconomic factors. Following U.S. President Donald Trump's announcement of $2,000 tariff dividends for Americans, crypto markets surged, with the total market cap hitting $3.5 trillion. Bitcoin rose 2% to $103,778.01, while Ethereum gained 3.7% to $3,519.10, according to a Yahoo Finance article. Experts note that Trump's tariff policies, which have sparked global trade tensions, have made crypto more sensitive to macroeconomic shifts, mirroring traditional financial markets.

Stablecoins, a cornerstone of crypto treasury strategies, are also gaining traction in Asia. Transak CEO Prashanth Omkar highlighted the next wave of stablecoin adoption, predicting that the technology could operate "invisibly" for users while generating revenue through low-risk assets like U.S. Treasuries, as noted in a Yahoo Finance report. Hong Kong's upcoming stablecoin licensing in 2026 is expected to unlock $10 billion in institutional flows, further solidifying its appeal. Meanwhile, Coinbase's Q3 revenue from Circle's USDC—$355 million—demonstrates the scale of stablecoin-driven income for major platforms, as reported by the same Yahoo Finance article.

The expansion of crypto treasuries, now valued at $200 billion globally, has accelerated in Asia, where firms seek faster settlements and inflation protection. Hong Kong's Cyberport and Central districts are becoming hubs for Web3 companies, with access to grants and regulated stablecoins enabling efficient treasury operations. If this trend continues, total value locked in the region could rise by 20% by mid-2026, as reported by the Blockchain Magazine report.

Coinbase's Singapore launch aligns with these dynamics, offering businesses a regulated pathway to leverage stablecoins for payments and liquidity management. As Hong Kong and Singapore refine their strategies, Asia's digital asset market is poised for rapid growth, providing investors and companies with unprecedented opportunities.