DigiFT Secures Capital Markets License from Singapore Regulatorby Fintech News Singapore December 5, 2023
Singapore-based digital assets exchange DigiFT has been granted a Capital Markets Services (CMS) license and has been recognised as a Recognised Market Operator (RMO) by the Monetary Authority of Singapore (MAS).
This enables DigiFT to legally deal in capital markets products such as securities or units in collective investment schemes (CIS) in Singapore.
The CMS license specifically permits DigiFT to facilitate the issuance of security tokens, while the RMO status allows the company to operate a market for secondary trading of these tokens on the public blockchain.
Founded in 2021, DigiFT claims to be the first exchange incorporating an Automatic Market Making (AMM) mechanism to have been a part of the MAS Fintech Regulatory Sandbox.
The platform operates on the Ethereum blockchain and offers liquidity for secondary trading of security tokens. These tokens are backed by real-world assets including bonds, equities, and collective investment schemes.
DigiFT’s services are accessible via their website and mobile app, allowing investors to engage in transactions using fiat currency or stablecoins.
The firm aims to expand the availability of its mobile app across different regions, as well as enhance investors’ user experience with features such as on-chain proof-of-asset disclosure and cross-chain deployment.
Additionally, DigiFT is also focused on enhancing its product offerings in collaboration with issuers and leveraging the founding team’s expertise in finance and blockchain technology.
DigiFT had previously closed a US$ 10.5 million Pre-Series A funding round led by Shanda Group in February this year.
Henry Zhang, Founder & 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.”