Ethereum-based digital asset exchange DigiFT said it has received a Capital Market Services (CMS) license and been recognized by the Monetary Authority of Singapore as a Recognized Market Operator (RMO), according to a November 5 statement shared with CryptoSlate.
The CMS license allows DigiFT to conduct regulated activities involving securities and CIS units (collective investment undertakings) in Singapore, and to facilitate the issuance of security tokens. On the other hand, its recognition as an RMO allows it to operate a public, blockchain-based secondary trading market for security tokens.
“This historic achievement officially establishes us as the first regulated exchange on the public blockchain for real-world on-chain assets,” DigiFT said.
The exchange emphasized that obtaining the license reflects its commitment to regulatory compliance and is a crucial step in shaping future capital markets. DigiFT aims to combine blockchain technology with conventional financial methodologies to achieve this goal.
Henry Zhang, the founder and CEO of DigiFT, said:
“Securing both the CMS license and the RMO recognition is an important milestone in our journey to enable regulated access to financial opportunities in the chain. As the first exchange on the public blockchain to use an AMM mechanism for secondary trading, as RMO we will continue to unlock innovations 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 the Singapore Fintech Regulatory Sandbox in June 2022.
The platform was the first exchange to use an automated market making (AMM) mechanism in the sandbox trading capital market 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 major hub for the emerging industry as it has actively introduced new regulations that better protect its citizens from the risks of the emerging industry.
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