Hex Trust Gets In-Principle MPI License Approval from Singapore’s MAS for Enhanced Operations

Highlights:

• Hex Trust secures an in-principle MPI license approval to offer crypto custody and OCT services in Singapore.
• The expansion aligns with Singapore’s favorable regulatory environment and growing fintech sector.
• Hex Trust also acquired the Dubai VASP license and plans further expansion and fundraising.

On July 24, digital asset custodian Hex Trust announced it had secured in-principle approval for a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). This milestone enables Hex Trust to expand its operations in Singapore, a leading fintech hub.

Hex Trust receives in-principle approval 🎉 for Major Payment Institution (MPI) License from the Monetary Authority of Singapore (@MAS_sg), strengthening its presence in the city-state's vibrant fintech ecosystem 🇸🇬.

Read more: https://t.co/nqAnSTF8Pv pic.twitter.com/OcLhL2FRw8

— Hex Trust (@Hex_Trust) July 24, 2024

According to the company statement, the MPI license will enable the platform to offer “digital payment token (DPT) services” in Singapore. This includes over-the-counter (OTC) trading of DPTs alongside custodial services. 

Calvin Shen, managing director at Hex Trust, noted that the in-principle approval of this license reflects Hex Trust’s long-standing commitment to compliance, operational excellence, and its dedication to Singapore. He also mentioned that the new license would aid in safeguarding and optimizing the digital assets of their institutional clients with regulatory clarity.

The crypto custodian initially set up an office in Singapore in 2020. Subsequently, it obtained a Capital Market Services license to provide custody services in 2021. In April 2024, the MAS introduced amendments to the licensing regime, bringing services related to DPTs under the scope of the Payment Services Act. Hex Trust CEO Alessio Quaglini said the company had to meet stringent criteria to obtain the MPI license from the MAS, which is recognized for its “rigorous regulatory standards.”

Hex Trust’s Expansion into Singapore Aligns with Favorable Crypto Environment

The company’s expansion into Singapore aligns with the island nation’s favorable crypto environment, supported by its robust regulatory framework. Quaglini said the Monetary Authority of Singapore maintains stringent regulatory standards that aim to balance fostering innovation with ensuring consumer protection.

The company stated:

“[The approval follows a] growing demand amongst institutional clients for sophisticated and compliant digital asset management solutions in a region experiencing rapid fintech development.”

Although Singapore’s crypto environment is developing, the country currently has no plans to allow crypto listings like spot crypto ETFs. The CEO of Singapore Exchange (SGX) recently stated that the conditions are “not ready” for such products.

Hex Trust Broadens Global Presence with New Licenses and Funding Plans

Founded in 2018, Hex Trust serves banks, cryptocurrency exchanges, hedge funds, venture capital firms, asset managers, pension funds, and even central bank digital currency issuers. It also supports cryptocurrency-native firms such as Algorand, Chainalysis, AAVE, Polygon, and Sandbox.

Hex Trust has been focusing on crypto-centric jurisdictions to expand its digital asset solutions. Last month, the company acquired an additional Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). This license allows it to offer broker-dealer and investment services, including staking. 

📢Hex Trust secures additional VASP license from @varadubai expanding its comprehensive services to cover Broker-Dealer, Management, Investment, & Staking – reinforcing commitment to secure, compliant digital assets in MENA.

Learn more👇https://t.co/2dDvSDOTgK

— Hex Trust (@Hex_Trust) June 5, 2024

Furthermore, Hex Trust raised $88 million in its Series B funding round in 2022. The crypto services platform has announced plans to raise additional funds in 2024. Hex Trust said the funds will be used to expand and acquire additional licenses in Europe and the Middle East. The company has offices in Hong Kong, Singapore, Vietnam, Dubai, Italy, and France.