Singapore is intensifying support for fintech and digital assets with a new S$220 million (about US$173 million) commitment even as private investment cools. The Monetary Authority of Singapore unveiled the Financial Sector Technology and Innovation Scheme 4.0 (FSTI 4.0) on August 31, deploying funding over three years across six tracks: institutional projects, manpower, AI adoption, infrastructure, centres of excellence and industry awards.
Under FSTI 4.0, MAS will prioritize frontier technologies such as AI, distributed ledger technology and quantum technology. The manpower track includes co-funding internship stipends and a portal operated by the Singapore FinTech Association, with a target of at least 1,000 fintech internships over three years. AI support shifts toward adoption of market-ready products via PathFin.ai, while infrastructure funding aims to support industry-wide platforms and interoperability. The scheme follows FSTI 3.0, which committed up to S$150 million from 2023 through 2026.
The announcement landed days after KPMG’s Pulse of Fintech H1'2026 report showed Singapore fintech investment fell to just over $499 million across 53 deals in the first half of 2026, down from about $1.45 billion across 97 deals a year earlier and the weakest first half in nearly a decade. The first quarter brought only $88 million across 26 deals before activity rebounded to $411 million across 27 deals in the second quarter. That rebound was concentrated: a single $320 million cross-border payments round in June made up close to two-thirds of the half’s total.
Digital assets and cryptocurrency still accounted for the largest share of deal count, with 27 of 53 deals, although disclosed value was a comparatively modest $95.5 million. KPMG said 15 of those crypto and blockchain deals were seed and early-stage, weighted toward exchanges, brokerages and cross-chain tooling, while later-stage names focused on regulated market infrastructure such as digital-asset services providers and crypto payments firms.
Globally, fintech investment rose to $103.1 billion in H1 2026 from $72.2 billion in H2 2025, even as deal volume fell from 2,500 to 2,100. The Americas captured more than 80% of that total, while Asia-Pacific fintech investment declined to $4.6 billion across 350 deals. KPMG described Singapore’s concentrated mega-round as a local version of the same global pattern: fewer deals, larger checks, and a premium on proven business models.
