Digital asset custodian Hex Trust has received in-principle approval for a Major Payment Institution （MPI） license from Singapore’s financial regulator. This approval allows Hex Trust to offer regulated Digital Payment Token services in the city-state.
Points
- Hex Trust receives in-principle MPI license approval
- Allows offering regulated Digital Payment Token services
- Hex Trust’s expansion in Singapore and other regions
- Strict regulatory standards of the Monetary Authority of Singapore
- Demand for compliant digital asset management solutions
Digital asset custodian Hex Trust has announced that it has obtained in-principle approval from the Monetary Authority of Singapore for a Major Payment Institution （MPI） license. This significant milestone will enable Hex Trust to offer regulated “Digital Payment Token” services, including custody and over-the-counter trading, in Singapore. The approval, announced on July 24, reflects the growing demand among institutional clients for sophisticated and compliant digital asset management solutions in a rapidly developing fintech region.
Hex Trust set up an office and team in Singapore in 2020 and secured a license to provide custody services in September 2021. However, recent amendments to the Payment Services Act have brought custody under the amended law’s scope, necessitating further approval for the MPI license.
Hex Trust CEO Alessio Quaglini emphasized the stringent criteria they had to meet to receive this license, highlighting Singapore’s rigorous regulatory standards that aim to balance innovation and consumer protection. This approval positions Hex Trust to expand its services in a region that is witnessing rapid fintech growth.
Other digital asset firms have also made strides in Singapore. BitGo received in-principle approval for an MPI license in January, while Ripple Labs obtained the same approval three months earlier. Hex Trust has further broadened its reach by securing an additional Virtual Asset Service Provider license in Dubai in June, allowing it to offer broker-dealer and investment services, including staking.
As digital asset management continues to evolve, Hex Trust’s approval for the MPI license marks a crucial step in providing regulated and compliant services. This move is expected to enhance their market position and attract more institutional clients seeking secure and regulated digital asset solutions.
解説
- Regulated services: The MPI license allows Hex Trust to offer regulated Digital Payment Token services, including custody and OTC trading.
- Stringent standards: Singapore’s Monetary Authority maintains rigorous regulatory standards, ensuring a balance between innovation and consumer protection.
- Market expansion: Hex Trust’s approval in Singapore and Dubai reflects its strategic expansion in key fintech regions.
- Institutional demand: The growing demand for compliant digital asset management solutions underscores the importance of regulated service providers like Hex Trust.