Sparrow caters to institutional clients navigating the cryptocurrency sphere right from the beginning
Sparrow, a homegrown digital asset solutions company founded in 2018, recognized the importance of institutional cryptocurrency adoption for the market’s growth. Sparrow’s founders focused primarily on serving institutional clients with high regulatory compliance standards to meet their stringent demands at a time when the spotlight was on retail investors.
Financial institutions are subject to greater compliance and regulatory monitoring, reporting, and scrutiny. There is a strong need to ensure such requirements are met efficiently for them to advance cryptocurrency offerings. And that’s where Sparrow demonstrates its expertise — providing tailored digital asset solutions to this specialized profile.
Major Payment Institution Licensee
In August, Sparrow obtained the Major Payment Institution (MPI) licence from the Monetary Authority of Singapore (MAS). This enables us to provide Digital Payment Token (DPT) services in Singapore under the Payment Services Act 2019.
Financial institutions want to feel confident that DPT service providers possess the necessary abilities to navigate the ever-changing cryptocurrency ecosystem. The review of systems, policies, and procedures by the regulatory body on: customer protection measures, anti-money laundering and countering the financing of terrorism (AML/CFT) controls, technology and cybersecurity hygiene can serve as a sounding board for them.
“With our MPI licence, Sparrow is well-prepared to drive institutional adoption within a secure framework. Financial institutions looking to deepen their involvement in this innovative and decentralized ecosystem can afford themselves the assurance that they are working with a trustworthy and competent digital assets partner,” said Kenneth Yeo, Chief Executive Officer.
Uncompromising compliance and security rigor
Sparrow counteracts the pressing issues of the illegitimate use of cryptocurrencies related to money laundering, terrorism funding, and tax evasion with a strong risk-based framework.
“We are aware of the operational, legal, reputational, and financial risk our clients as financial institutions face. In order to enable a higher level of user confidence, we create a seamless and uncomplicated compliance experience (without compromising crucial processes) for them, ” shared Mak Chung Yee, Chief Risk and Compliance Officer.
On top of that, we emphasize security to provide financial institutions with a high level of protection from security risks. Sparrow partners with a world-class custodian to safeguard clients’ digital assets apart from adopting a multi-layered security approach to minimize any occurrences of cyber threats.
Customizable solutions and end-to-end client support
Cryptocurrency investments do not follow a linear approach and vary according to risk appetite, growth objective, and time horizon. As such, Sparrow builds customizable solutions for financial institutions by having a deep understanding of their unique requirements. These solutions, suitable for varying market conditions and the above-mentioned needs, are flexible and scalable for financial institutions to even offer cryptocurrency exposure to their own clientele.
Additionally, Sparrow extends a highly professional and personalized service to all institutional clients via a dedicated digital assets specialist team. This high-touch service ensures that clients’ investment and hedging needs are always handled in a timely and efficient manner.
Best-in-class execution and liquidity
Sparrow routinely leverages technology to improve and optimize trade workflow. Client experiences are maximized with a seamless journey through price discovery, trade execution and confirmation, as well as settlements. This ensures that clients will always be able to access market liquidity.
As the cryptocurrency market recovers from deleveraging and contagion fears, Sparrow notices that the investment terrain has also evolved. We remain resolute and continue to offer quality products (to unlock the value of cryptocurrency volatility) and unparalleled service to all our clients.
“Sparrow’s prudent and measured approach towards counterparty, market, and execution risks remains the cornerstone of our robust risk management framework. We are confident it will continue to serve us, our clients, and partners well,” Ang Kok Wee, Chief Revenue Officer adds.
Sparrow is proud to be a gold sponsor for the Singapore FinTech Festival
Sparrow will be a part of the Singapore FinTech Festival that is taking place from 2 to 4 November 2022 at the Expo Convention Center. Visit our booth at Hall 2, Booth 2G23 to speak with our digital asset experts in person. Alternatively, reach out to us today to find out more about our bespoke digital asset solutions.
Risk Warning on Digital Payment Token Services:
The Monetary Authority of Singapore (MAS) requires us to provide this risk warning to you as a customer of a Digital Payment Token (DPT) service provider. Before you pay your DPT service provider any money or DPT, you should be aware of the following.
1.Your DPT service provider is licensed by MAS to provide DPT services. Please note that this does not mean you will be able to recover all the money or DPTs you paid to your DPT service provider if your DPT service provider’s business fails.
2.You should not transact in the DPT if you are not familiar with this DPT. This includes how the DPT is created, and how the DPT you intend to transact is transferred or held by your DPT service provider.
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.
4.You should be aware that your DPT service provider, as part of its licence to provide DPT services, may offer services related to DPTs which are promoted as having a stable value, commonly known as “stablecoin”.
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.
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