Singapore-based digital assets exchange, DigiFT, proudly announces the attainment of a Capital Markets Services (CMS) licence and recognition as a Recognised Market Operator (RMO) by the Monetary Authority of Singapore (MAS). These regulatory milestones empower DigiFT to conduct regulated activities related to securities and units in collective investment schemes (CIS) through the issuance of security tokens. Additionally, as an RMO, DigiFT gains the ability to operate an organized market for the secondary trading of security tokens on the public blockchain.
Established in 2021, DigiFT stands as the first exchange with an Automatic Market Making (AMM) mechanism to be admitted into the MAS FinTech Regulatory Sandbox. The platform, built on the Ethereum blockchain, facilitates secondary trading liquidity for security tokens backed by real-world assets, including bonds, equities, and collective investment schemes.
Key Highlights of the Announcement:
- Regulatory Authorisations: DigiFT’s CMS licence enables it to engage in the regulated activity of dealing in capital markets products, specifically securities and CIS units in Singapore. The RMO recognition further positions the platform to operate an organized market for secondary trading of security tokens on the public blockchain.
- AMM Mechanism and Blockchain Integration: DigiFT’s platform incorporates an innovative AMM mechanism for secondary trading on the public blockchain, offering investors the ability to subscribe, trade, and redeem on-chain assets, including those backed by real-world assets.
- Mobile App Expansion and User Experience Enhancement: With the regulatory groundwork laid, DigiFT sets its sights on expanding the availability of its mobile app across different regions. The platform aims to enhance user experience by introducing features such as on-chain proof-of-asset disclosure and cross-chain deployment.
- Product Offerings and Institutional-Grade Risk Management: DigiFT collaborates with issuers to broaden its product offerings, leveraging the team’s extensive experience in finance and blockchain technology. The platform focuses on bridging the gap between digital assets and traditional finance, backed by institutional-grade risk management.
- Future Vision and Responsible Innovation: DigiFT expresses its commitment to unlocking further innovations as an RMO, particularly in the intersection of finance and blockchain technology. The platform envisions contributing to the next generation of capital markets through responsible innovation.
Henry Zhang, Founder & CEO of DigiFT, considers the attainment of the CMS licence and RMO recognition as a significant milestone in the journey to enable regulated access to financial opportunities on-chain. He emphasizes DigiFT’s dedication to responsible innovation in building the next generation of capital markets.
Singapore, recognized as a leading hub for financial services and technological innovation, provides a conducive environment for fintech breakthroughs. DigiFT expresses honor in receiving these licenses in one of the premier financial hubs and remains focused on responsible innovation to shape the future of capital markets.
About DigiFT
DigiFT, admitted into the MAS FinTech Regulatory Sandbox, operates as a digital assets exchange dealing in on-chain real-world assets on the Ethereum public blockchain. The platform facilitates the issuance of blockchain-based security tokens and ensures continuous liquidity via an AMM. Established in Singapore in 2021, DigiFT is committed to meeting regulatory requirements while providing innovative financial solutions responsibly. The founding team brings extensive experience from Citi, Standard Chartered, Morgan Stanley, and the Shenzhen Stock Exchange, with deep knowledge of blockchain technology.
Photo by Paul Cuoco on Unsplash
Read other stories: Societe Generale Pioneers Digital Green Bond on Ethereum Blockchain