[WDAF 2026] Zero crypto exposure is an investment choice: Sygnum

Keeping digital assets out of an investment portfolio is itself an active investment decision, as wealthy investors increasingly consider how much exposure to cryptocurrencies they should have, according to Gerald Goh, co-founder and Asia-Pacific executive chairman of digital asset banking group Sygnum.

"The decision not to include digital assets, so staying at zero, let's also be clear, that is an active decision," Goh said at the World Digital Assets Forum 2026 in Seoul on Monday.

Speaking during a fireside chat moderated by Yoo Seung-jae, an attorney at Kim & Chang, Goh said the appropriate allocation depends on investors' investment horizons and ability to absorb losses, rather than a fixed percentage suitable for everyone.

His remarks reflect a broader shift in private wealth management, with investors moving beyond simply buying and holding cryptocurrencies toward integrating digital assets into their overall portfolios.

Sygnum initially focused on helping clients hold, trade and convert cryptocurrencies into cash. Many investors kept their digital assets with exchanges or specialized custodians while managing traditional investments through banks and brokerages.

"While this is a workable solution, it introduces friction and it introduces cost and risk into the process," Goh said.

Clients increasingly wanted to manage cash, cryptocurrencies and money market funds through a single financial institution. As demand evolved, Sygnum expanded into portfolio advisory and discretionary asset management services covering both traditional and digital assets.

Diversification was the most frequently cited reason for investing in digital assets in Sygnum's client survey last year, Goh said.

The discussion also addressed how investors can seek returns during periods of cryptocurrency market weakness.

Yoo raised concerns about generating returns in what he described as "a challenging time" for crypto markets.

Goh said some investment strategies do not depend solely on rising cryptocurrency prices. These include earning staking rewards on eligible tokens, lending bitcoin and exploiting price differences between trading markets.

Goh also emphasized the importance of custody arrangements, warning that even a diversified portfolio could suffer losses if a custodian is hacked or mishandles client assets.

For Korean banks, the growing convergence of traditional and digital asset management could create opportunities to develop new wealth management services, he said.

Goh said many Korean financial institutions he met this year were exploring partnerships with overseas digital asset firms for technology and strategic expertise as they considered which capabilities to develop internally.

"There's now a whole universe of service providers, many of whom, like us, are fully regulated in offshore locations," he said.

"A lot of their lessons can be put to use in Korea when domestic regulations allow these products and services to be offered here."

Goh suggested that Korea's banks could benefit from overseas experience in integrating digital assets into conventional banking and wealth management, although the scope of such services would depend on the country's evolving regulatory framework.