Ethereum-based digital asset exchange DigiFT said in a statement on November 5 that it has received a Capital Market Services (CMS) license and is recognized as a Recognized Market Operator (RMO) by the Monetary Authority of Singapore. CryptoSlate.
The CMS License authorizes DigiFT to handle regulatory activities related to securities and collective investment scheme (CIS) units in Singapore and facilitate the issuance of security tokens. On the other hand, being recognized as an RMO allows you to manage a public blockchain-based secondary trading market for security tokens.
“This milestone officially establishes us as the first regulated exchange on a public blockchain for on-chain real-world assets,” DigiFT said.
The exchange emphasized that securing a license reflects its commitment to regulatory compliance and is a pivotal step in shaping the capital markets of the future. DigiFT aims to integrate blockchain technology with existing financial methodologies to achieve these goals.
Henry Zhang, Founder and CEO of DigiFT, said:
“Securing both CMS licensing and RMO recognition is an important milestone in our journey to enable regulated access to on-chain financial opportunities. As the first exchange on a public blockchain to use the AMM mechanism for secondary transactions, as RMO we will continue to enable innovation at the intersection of finance and blockchain technology, including the tokenization of real-world assets.”
DigiFT focuses on tokenizing real-world assets and making them available on-chain. The platform was founded in 2021 and joined Singapore’s fintech regulatory sandbox in June 2022.
The platform was the first exchange to use automated market making (AMM) mechanisms in a sandbox to cover capital markets products by facilitating the issuance of security tokens and operating an organized market for secondary trading.
Over the past year, Singapore has emerged as a notable hub for emerging industries, actively introducing new regulations to better protect citizens from the risks of emerging industries.
DigiFT becomes Singapore’s first regulated public blockchain exchange for asset tokenization. First appeared on CryptoSlate.