DigiFT becomes Singapore’s first regulated public blockchain exchange for asset tokenization
The exchange said the license reflects its dedication to regulations and a pivotal step to shaping the future of capital markets.
Ethereum-based digital assets exchange DigiFT said it received a Capital Market Services (CMS) license and was recognized as a Recognized Market Operator (RMO) by the Monetary Authority of Singapore, according to a Nov. 5 statement shared with CryptoSlate.
The CMS license allows DigiFT to handle regulated activities involving securities and collective investment scheme (CIS) units in Singapore and empowers it to facilitate security token issuance. On the other hand, its recognition as an RMO empowers it to manage a public blockchain-based secondary trading market for security tokens.
“This landmark achievement officially establishes us as the first regulated exchange on the public blockchain for on-chain real-world assets,” DigiFT said.
The exchange emphasized that securing the license reflects its dedication to adhering to regulations and is a pivotal step in shaping future capital markets. DigiFT aims to merge blockchain technology with conventional financial methodologies to achieve this objective.
Henry Zhang, the founder and CEO of DigiFT, said:
“Securing both the CMS licence and RMO recognition is a significant milestone in our journey to enable regulated access to financial opportunities on-chain. As the first exchange on the public blockchain to use an AMM mechanism for secondary trading, we will continue to unlock innovations, as a RMO, in the intersection of finance and blockchain technology, including the tokenisation of real-world assets.”
DigiFT focuses on tokenizing real-world assets and making them available on-chain. The platform was established in 2021 and joined the Singapore Fintech Regulatory Sandbox in June 2022.
The platform was the first exchange using an automated market-making (AMM) mechanism in the sandbox dealing in capital markets products by facilitating the issuance of security tokens and operating an organized market for secondary trading
During the past year, Singapore has emerged as a notable hub for the emerging industry as it has been actively introducing new regulations that better protect its citizens from the risks of the emerging industry.