Digital assets exchange DigiFT announced it has scored a Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS). Alongside this, the firm obtained recognition as a Recognised Market Operator (RMO) by the Monetary Authority of Singapore (MAS). This implies that the firm can run a collective investment scheme and also an “organized market,” or secondary-market trading.
The Recognised Market Operator (RMO) license was granted to the firm on Dec. 1, while the CMS license came a few days after. For DigiFT, her recent achievement states the firm is the first regulated exchange deployed on the public blockchain for on-chain real-world assets deployed to have achieved such.
According to DigiFT, the firm aims to tokenize financial assets and enable direct trading of these assets with reduced intermediaries. “We are committed to shaping The Next Generation of Capital Markets by integrating the best of blockchain technology and traditional financial practices. This commitment reinforces our focus on being regulated and compliant with pertinent laws and regulations, ensuring healthy and sustainable growth,” DigiFT said.
Before DigiFT obtained the recognition, the firm underwent the central bank’s FinTech Regulatory Sandbox which was an 18-month process. According to the firm’s CEO and founder Henry Zhang, “DigiFT is the first automatic market-making (AMM) exchange to have been accepted into the MAS FinTech Regulatory Sandbox.
While it took part in the Sandbox, the firm obtained the recent licenses after graduating from the Sandbox. Zang said that “MAS admits innovative business models to their regulatory sandbox and observes them within a controlled environment, and one needs to graduate from the sandbox to receive full licenses,”
Further, the CEO specifically mentioned that “No other business model with an AMM mechanism has been admitted to the sandbox. As the first regulated exchange on the public blockchain to use an AMM mechanism for secondary trading, we will continue to push the frontier of innovation, including with the tokenization of real-world assets.”
The Singapore-based DigiFT is built on the Ethereum Blockchain and aims to offer secondary trading liquidity for security tokens backed by assets like bonds and equities. With this, investors can exchange on-chain assets using conventional payments, that is fiat currencies or stablecoins.
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