The corporation would be able to provide regulated Digital Payment Token services, such as custody, with the Major Payment Institution license.
The Monetary Authority of Singapore (MAS) has given his company in-principle approval for a Major Payment Institution license, which was revealed by crypto server Hex Trust on Wednesday.
Major Payment Institution licenses enable Singaporean organizations to deal with Digital Payment Tokens (DPTs) and conduct numerous payment services. The licensing regime was established under the Payment Services Act of 2019 and was revised in April 2024 to encompass custodial services for DPTs.
Many prominent crypto firms, including BitGo and Ripple, have been competing for MAS’ license, which has been considered one of the gold standards for crypto licenses in Asia.
In an interview with CoinDesk, Alessio Quaglini, the CEO and co-founder of Hex Trust, stated that the space for unlicensed crypto entities functioning in a gray area is diminishing, and licensure is an inevitable outcome for any significant participant in the industry.
“It will be necessary for businesses to make a decision quickly. Do I wish to operate a business that is entirely regulated, obtain all necessary licenses, and be situated on the correct side of the spectrum? Or would I prefer to be on the opposite end of the spectrum, beyond the reach of regulation?” he stated in an interview with CoinDesk.
Quaglini stated that the licensing procedure for MAS, which commenced in 2020, was a multiyear effort to reach this point. The firm finds it to be exceedingly advantageous, regardless of the expenditure and effort necessary.
“We have a distinct commitment. We aspire to be on the correct side of the spectrum. Commitment is ours. We are committed to maintaining compliance.” He stated, “Our objective is to obtain licenses in the most significant jurisdictions.”
This announcement is in accordance with Hex Trust’s recent success in extending its licenses in Dubai. This expansion now enables its markets subsidiary to provide a full range of Virtual Asset services, including regulated Staking Services and broker-dealer services, according to a press release. Hex Trust introduced USDX in May, a native stablecoin that operates on the Layer-1 blockchain Flare.
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