Bridging traditional finance with digital asset solutions

Sparrow discusses its take on the trends in the digital assets space.

Cryptocurrency has been at the centre stage, particularly amongst institutional clients who find themselves dealing with an upcoming new asset class. Sparrow, a home-grown digital assets specialist, shared insights and views on the trends taking place in the digital assets space. 

“We observe growing interest amongst financial institutions and family offices in a new developing asset class that not only yields but also grows, creates value, and acts as an alternative way to store assets”, said Alvaro Patron, Head of Sales at Sparrow. Whilst individual clients tend to be engaged in just buying and holding and are geared towards a shorter-term financial gain, the firm also noticed that institutions are more concerned with long-term wealth creation. Businesses are now more focused on regulations, quality of assets, and how the products are structured to ensure transparency in their dealings, holdings, and accounts.

“Sparrow aims to raise the confidence of institutional clients by offering innovative solutions to bridge traditional finance with digital asset solutions,” added Patron.

A need to address common misconceptions

Cryptocurrency is not just a “long or short” or “buy and hold” investment strategy. There are now more tools available to help clients tailor a plan to suit varied risk appetites. These tools help address the misconception that clients do not have control over the perceived volatility embedded in cryptocurrencies. In addition, clients should not enter a cryptocurrency journey based only on speculation. Instead, they should work with an established digital assets partner, like Sparrow, who can tailor a strategy to suit their risk appetite and long-term goals. 

Sparrow welcomes proactive regulations 

Patron believes that proactive regulations are necessary to lay a good foundation, paving the way for more systematic growth in cryptocurrency and creating a level playing field for clients. 

“We are optimistic that with a solid regulatory framework in place, digital assets will consolidate their position and consolidate its position as the new asset class,” said Patron. 

Manage volatility with bespoke digital asset solutions

An optimal portfolio growth strategy involves having a solid framework that allows institutional clients to take positions and participate according to their comfort level. This can be facilitated with financial tools that manage risks effectively. 

Sparrow tailors digital asset solutions that allow its clients to meet their portfolio objectives, goals, and risk appetites. Digital asset specialists at Sparrow design a risk-managed customer journey with long-term goals, and at the same time address common pain-points in institutional digital asset solutions like robust risk management, stringent compliance, accounting and reporting standards. 

Cryptocurrency adoption continues

There are more businesses in various sectors accepting cryptocurrency as payments, including hospitality and retail, entertainment, airlines, and co-workspaces. “We are optimistic in the outlook of cryptocurrency with more evidence of higher utilisation in digital payment mechanisms, more funds deployment into developing innovative payment solutions, and investments supporting start-up businesses in the fintech and blockchain industry,” added Patron.

Sparrow secures $4.4m in funding from Gain Loyal Ltd

Sparrow was established in 2018 in Singapore to offer innovative products and solutions for digital assets. Backed by renowned investors, its digital assets platform endeavours to comply with the highest regulatory and cybersecurity standards. The team of experts at Sparrow provides compelling structured products, white-labelled products, and digital asset resource administration solutions. 

“We are pleased to have onboarded Gain Loyal Pte. Ltd. to invest in growing Sparrow’s digital asset solution business,” said Sparrow CEO Kenneth Yeo. 

“We understand that the institutions and wealth managers are challenged with a lack of regulated digital asset platforms whilst facing cybersecurity and market risks. Our vision is to be the preferred partner of financial institutions and wealth managers who demand truly institutional products and solutions,” he concluded.

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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 the 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. 

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