DigiFT Secures MAS Regulatory Approvals in Singapore Post-Sandbox Graduation

In a recent announcement, Henry Zhang, the founder of DigiFT, revealed that the digital assets exchange has achieved a significant milestone by becoming the first-ever platform with an automated market-making (AMM) system to gain entry into the MAS FinTech Regulatory Sandbox. The Monetary Authority of Singapore (MAS) has granted approval to DigiFT to operate collective investment schemes and function as an "organized market" for secondary-market trading, according to Zhang, who serves as the CEO of the Singapore-based company.

During an interview, Zhang shared that the exchange successfully secured the Capital Markets Services (CMS) license from the central bank on Tuesday, coupled with a Recognised Market Operator (RMO) license received on December 1. Singapore has been actively navigating the fine line between regulatory measures and encouraging innovation within the cryptocurrency space. Ravi Menon, the Managing Director of MAS, recently addressed the limitations of cryptocurrencies as digital money while recognizing the broader potential applications of the underlying technology.

DigiFT's acknowledgment by MAS marks the culmination of an 18-month journey within the central bank's FinTech Regulatory Sandbox. Zhang highlighted the pioneering aspect of DigiFT, stating, 

"DigiFT is the first exchange featuring an automatic market-making (AMM) mechanism to gain admission into the MAS FinTech Regulatory Sandbox."

 The AMM mechanism, which powers decentralized exchanges (DEXs), serves to eliminate dependence on centralized exchanges.

Zhang provided insights into MAS's approach to admitting innovative business models into their regulatory sandbox, stating, 

"The MAS actively invites innovative business models to their regulatory sandbox, allowing for observation within a controlled environment. Graduation from the sandbox is a prerequisite for obtaining full licenses."

 Emphasizing the unique position of DigiFT, Zhang added, 

"No other business model incorporating an AMM mechanism has been accepted into the sandbox."

 As the inaugural regulated exchange on the public blockchain utilizing an AMM mechanism for secondary trading, DigiFT aims to spearhead further innovation, particularly in the realm of tokenizing real-world assets.

Operating on the Ethereum blockchain, DigiFT's platform is poised to offer liquidity for the secondary trading of security tokens backed by tangible assets such as bonds and equities. This innovative approach enables investors to participate in subscribing, trading, and redeeming on-chain assets using either fiat currency or stablecoins. The integration of the AMM mechanism positions DigiFT as a trailblazer in the evolving landscape of digital asset exchanges, showcasing a commitment to advancing technological solutions and expanding the possibilities of blockchain-based finance.

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