Layer One: Three key trends driving Asia-Pacific's crypto adoption

Welcome to Layer One: the newsletter and podcast on the intersection of crypto and the real world. Hosted by Steven Gates and Kelvin Sparks, Layer One brings you inside the conversations driving blockchain forward.

Last week, the team was joined by guest co-host John Wu, President of Ava Labs, and Carlos Domingo, CEO of Securitize, to discuss the latter's billion-dollar public listing and the “end of the beginning” for tokenized assets.

In this edition of the Layer One newsletter, we're looking at the state of play in one of the the fastest-moving frontiers for tokenization and crypto adoption: Asia.

Tokenization Worldwide: The three key trends driving Asia-Pacific's booming crypto adoption

This March, Animoca Brands signed a major partnership with Ava Labs, aimed at expanding the latter’s reach across Asian markets. The Hong Kong-based Web3 tastemaker — which boasts hundreds of portfolio companies across entertainment, RWAs and more — has recently made major strides into tokenization, securing key licenses in the UAE and other regional hubs.

This week Justin Kim, Head of Asia at Ava Labs, gave us some insights into what exactly this means for the future of blockchain adoption across the continent.

In its 2025 report on the global state of crypto adoption, Chainalysis ranked Asia-Pacific as the fastest-growing region in the world. APAC countries represent five of the top ten spots on the list, with the region logging $2.36 trillion in transaction volume (up 69% year-over-year).

However, the pace and character of this adoption isn’t uniform across the region. Kim highlighted three distinct trends shaping these Asian markets:

Growth in Southeast Asia is largely being driven by strong grassroots adoption. As such, Vietnam and the Philippines hold the 4th and 9th spots in Chainalysis’ world adoption rankings. These trends are now being increasingly backed up by dovish regulatory shifts: Vietnam’s finance ministry last month announced a pilot scheme for the first licensed domestic crypto exchanges.

Authorities are crafting such regulations not only to support booming domestic markets, but also to combat a thriving scam industry which has put down deep roots in the region. Digital assets continue to play a central role in so-called “scam compounds” in Cambodia and Myanmar, which often target victims with fraudulent investment schemes. Cambodian lawmakers this month introduced new legislation aimed at tackling these syndicates.

In contrast, Hong Kong and Singapore are already firmly established as world leaders in regulated digital assets. Together, they account for 99% of the continent’s ~$1.5 billion in tokenized RWA volume (a figure only set to increase).

In recent months, major Hong Kong banks have been filing applications for the first wave of locally issued stablecoin licenses. Animoca Brands itself launched a joint application with Standard Chartered, under the name Anchorpoint Financial, expected to be among the first firms awarded licenses later this year.

Further east, South Korea’s largest banking group, KB Bank, last week partnered with Ava Labs to build a “hybrid payments system” for its credit card arm. The system will utilize a custom Avalanche L1 chain to facilitate spending in both credit and stablecoins for holders.

Korea has historically been a fast-mover in crypto adoption, but Kim warned that “slow and cautious regulatory progress is creating friction” for further growth in the country. Its Digital Asset Basic Act — although a major catalyst for institutional tokenization efforts — is now far past its original 2025 deadline. Included among the act's terms is a strict ban on idle stablecoin yields (a point of contention which has held similar US legislation up for many months).

All in all, Asia’s crypto markets are as diverse as its many cultures. Together, they comprise the most dynamic, fastest-moving frontier for blockchain's worldwide expansion.

Podcast Recap: Securitize CEO on the trillion-dollar future of tokenization

In the Headlines: The stories driving the conversation this week

• South Korean CEX Bithumb has launched legal proceedings to recover bitcoin lost in a February “fat finger” incident. The event saw an employee accidentally distribute 620,000 BTC to platform users, the vast majority of which has already been retrieved. However, a minority of users argue they’re under no obligation to return the funds, leaving 7 BTC still outstanding. Bithumb has requested a provisional seizure of the assets while legal proceedings get underway.
• Solana DEX Stabble advised LPs to withdraw assets, after discovering a North Korean national was previously employed by the firm. The pre-emptive warning was prompted by a post from online sleuth ZachXBT, who tracked the individual’s work history. A significant regional player for all the wrong reasons, North Korea is the root of billions of dollars in crypto exploits. These incidents can involve multi-year social engineering efforts, with DPRK nationals infiltrating firms under false identities.
• Broadridge Financial Solutions is moving to bring its corporate governance systems onchain. The fintech firm — which manages communications and governance for over 10,000 public companies — will build its own dedicated Avalanche L1, where shareholder access and voting are managed onchain. The system's first outing will come via a live vote for Galaxy Digital shareholders, who can participate directly from their crypto wallets.

Asia fourth overall in tokenized assets, with the majority in Hong Kong and Singapore

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Layer One is brought to you in collaboration with Avalanche.