Singapore’s fintech industry hit a five-year high at 191 deals transacted in 2021, a 37% rise from 139 deals in 2020, Tech in Asia reported, citing a KPMG report.

According to the KPMG Pulse of FinTech H2'21, the city-state saw its total transaction value for fintech deals surge by 59% year on year, mainly driven by the increasing investment in blockchain space, reaching $3.9 billion in 2021.

Investment in crypto and blockchain sectors reached record levels in Singapore, with 82 deals worth nearly $1.5 billion in 2021, up from 26 deals for $109.7 million the year before.

The report pointed out that most crypto and blockchain transactions in the city-state last year were for software and underlying infrastructure, not services.

"In Singapore, the surge in investments into crypto and blockchain has also outpaced that of payments which long held the top spot here,” said Anton Ruddenklau, Global Fintech Leader at KPMG International.

The executive also said that crypto and blockchain would continue to be highly hot investment sectors in 2022, with more crypto firms looking to regulators to provide clear guidance on activities in order to help foster and develop the space.

While funding in the payments sector lagged behind that in the crypto and blockchain sectors, the value of payments-related deals in the nation increased by a factor of ten. Total funding in the space grew from $60 million in 2020 to $628.4 million in 2021.

The report also said that regulatory activity in China helps drive attention to other markets in Asia-Pacific. Singapore, known for its stable political climate, is growing on the radar of companies looking for a base from which to expand outside of the region.