Hex Trust, a leading digital asset custodian, has achieved a significant regulatory milestone by obtaining in-principle approval from Singapore’s financial regulator for a major payment institution (MPI) license. This development positions Hex Trust to expand its offerings in the rapidly evolving fintech landscape of Singapore.
Scope and Implications of the MPI License
The MPI license will enable Hex Trust to provide regulated services under the category of “Digital Payment Token” in Singapore. Specifically, this includes the provision of custody and over-the-counter trading services. This approval marks a crucial step in Hex Trust’s strategy to cater to the growing demand among institutional clients for robust and compliant digital asset management solutions.
The recent amendments to the Payment Services Act, which now include custody services under its purview, prompted Hex Trust to pursue the MPI license. CEO Alessio Quaglini highlighted the rigorous process involved, emphasizing the Monetary Authority of Singapore’s (MAS) stringent criteria, which balance innovation with consumer protection. This regulatory framework is designed to ensure the integrity and security of financial services within the city-state.
Comparison with Industry Peers
Hex Trust is not alone in its pursuit of the MPI license. Earlier, digital asset custody firm BitGo received in-principle approval in January, and blockchain payments firm Ripple Labs secured the same status three months prior. These developments underscore a growing trend of digital asset firms seeking regulatory approval in Singapore, reflecting the region’s openness to fintech innovation.
In addition to its latest achievement in Singapore, Hex Trust has successfully expanded its regulatory footprint globally. In June, the firm obtained a Virtual Asset Service Provider license in Dubai, allowing it to offer broker-dealer and investment services, including staking. Hex Trust also holds licenses in Hong Kong, where it is headquartered, and has extended its regulatory compliance to include France and Italy.
Clientele and Services
Hex Trust caters to a diverse range of clients including banks, asset managers, hedge funds, venture capital firms, and even central bank digital currency issuers. It also supports major cryptocurrency-native firms such as AAVE, Algorand, Chainalysis, Polygon, and Sandbox, further highlighting its integral role in the digital asset ecosystem.
The company’s financial growth is evidenced by its successful Series B funding round, where it raised $88 million on March 16, 2022. This financial backing has undoubtedly supported Hex Trust’s strategic expansions and regulatory pursuits across multiple jurisdictions.
| Date | Event | Description |
|---|---|---|
| March 16, 2022 | Series B Funding | Raised $88 million to fuel expansion. |
| June 2023 | Dubai License Acquisition | Obtained a license for broker-dealer and investment services. |
| July 24, 2023 | Preliminary MPI Approval in Singapore | In-principle approval to offer digital payment token services. |
| Ongoing | Global Licensing | Holds additional licenses in Hong Kong, France, and Italy. |
The acquisition of the MPI license in Singapore is more than just a regulatory win for Hex Trust; it represents a significant enhancement of its ability to provide secure and compliant digital asset services in a key financial hub. As the company continues to navigate the complex regulatory landscapes of various countries, its commitment to compliance and innovation sets a strong precedent for other players in the digital asset space.
Hex Trust’s recent in-principle approval for an MPI license by Singapore’s financial authorities is a testament to its commitment to regulatory compliance and excellence in digital asset custody. As Hex Trust continues to expand its services and client base, it remains a pivotal entity in shaping the landscape of digital asset custody and management globally.
Featured image credit: Rogan Yeoh via Unsplash
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