Sparrow has emerged as a trusted digital asset partner of financial institutions and wealth managers in Singapore. Wealth management including digital assets requires prudence to thrive.
“Technological reliability and security are paramount,” says Kenneth Yeo, CEO of Sparrow. “The Sparrow platform is built with multi-layered security measures to industry-leading standards by adopting a pro-active approach to dealing with vulnerabilities and cyber-attacks. In addition, the proprietary platform, products, and solutions are designed to make it easy for our customers to trade with confidence”.
With cryptocurrencies evolving rapidly, Yeo says “The digital currency market is moving at high speed, so we must constantly evolve and create products and solutions that are compelling for our customers.”
He adds: “We believe that cryptocurrencies are here to stay for a long time and the growing penetration is a sign of continued growth for the industry. We are confident that more comprehensive regulations and requirements will kick in as regulators and institutions gain a better understanding of the ecosystem.”
Investors typically fall into two distinct types, says Alvaro Patron, Sparrow’s Head of Institutional Sales. “They are the crypto believers and the traditional finance.” Patron believes in reassuring the traditional customers. “There are some critical aspects or essentials when it comes to digital asset wealth management among institutional investors,” he says. “This include a need for more transparency, less counterparty risk, and a deeper market.”
Patron says one myth is that cryptocurrency is a one-size-fits-all plan for every financial institution and wealth manager. “That’s not true,” he says. “There is a misconception among many that bitcoin is an asset class that requires a large investment and to take unlimited risks.”
“Yes, it can be volatile and contains risks, but investors have the ability to own a fraction and use derivatives to manage their risk to their own risk capacity. This way, they can diversify their wealth management by right-sizing the asset allocation, according to their comfort and needs,” says Patron.
Patron notes that uncertainties are best mitigated with the use of advanced tools, trading strategies and risk management frameworks. “We are seeing the rise and stabilization of a new asset class,” he says. “Like emerging market bonds in the 1990s, there are progressive changes in the marketplace.”
“Sparrow is the bridge between traditional finance and digital asset wealth management.”
– Kenneth Yeo, CEO, Sparrow
Another important factor is that regulators are focusing on digital assets’ growth and development. “There is and we foresee more oversight and regulation coming into market which we see as a positive development as it allows for more solid compliance, transparency and helps to level the playing field,” says Patron.
“Better standards are something we welcome in the cryptocurrency space,” he adds. “While most are concerned with short-term negativities and volatility, these interventions are beneficial in the long-term as it serves as a catalyst to the market’s growth.”
Globally, cryptocurrencies, decentralized finance, and blockchain technologies are increasingly included in financial ecosystems. We believe the used cases are growing exponentially,” says Patron.
Nevertheless, Patron accepts that potential investors may be hesitant to allocate funds to the digital asset class. “When compared with traditional finance, the cryptocurrency space still lacks clarity on legal and regulatory compliance, technological safeguards, and Sparrow is actively working on bridging those needs.”
He said Singapore for example took “much-needed steps” to engage with industry players. “A robust and sensible regulatory framework is the foundation of a vibrant financial system,” says Patron. “We in the industry need to do our part too—providing customer education, compliance frameworks, and forging strong partnerships to ease these institutions’ concerns.”
“Sparrow’s wealth management solution is designed to address financial institutions’ common pain-points.”
– Alvaro Patron, Head of Institutional Sales
“While there is an active penetration within the retail market space, Sparrow is committed to meeting the needs of institutions and wealth managers by bridging the gaps” says Patron.
He says Sparrow has invested significant resources to serve institutions by providing quality institutional products, financial and performance reporting, as well as trading application programming interfaces, or APIs—the lines of code that connect different software. “We also believe in robust compliance, and technology risk management—these are critical to institutions having the confidence to trust the space.”
Sparrow was established in 2018 in Singapore to offer innovative financial products and solutions for digital wealth management. Backed by renowned investors, its digital asset trading platform complies with optimal regulatory and cybersecurity standards. The team of experts at Sparrow provides compelling structured products, white labeled products, and treasury management solutions.
Risk warning on digital payment token services
The Monetary Authority of Singapore (MAS) requires Sparrow Tech Private Limited (Sparrow) to provide this risk warning to you as a customer of a digital payment token (DPT) service provider.
Before you pay Sparrow any money or DPT, you should be aware of the following.
1. Sparrow is exempted by MAS from holding a licence to provide DPT services. Please note that you may not be able to recover all the money or DPTs you paid to Sparrow if Sparrow’s business fails.
2. You should not transact in the DPT if you are not familiar with this DPT. Transacting in DPTs may not be suitable for you if you are not familiar with the technology that DPT services provide.
3. You should be aware that the value of DPTs may fluctuate greatly. You should buy DPTs only if you are prepared to accept the risk of losing all of the money you put into such tokens.
The information provided here is for informational purposes only and is not to be construed as a recommendation or advice to any prospective investor in relation to any legal, tax, financial investment or any other matters. You should consult with an attorney or other professional advisors to determine what may be best for your individual needs.
Content contained on or made available through any of our communication channels is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on any of our communication channels is at your own risk.