Hex Trust, which was previously regulated for custody services in Singapore, has to transform the regulatory shifts provided by revised licensing categories.
It receives a preliminary nod from Singapore’s financial market authority for a substantial Payment Institution (MPI) license.
As stated in the July 24 announcement, Hex Trust will offer additional services in Singapore under the MPI license to provide protected custody for “Digital Payment Tokens” and allow over-the-counter trading.
Hex Trust, which started operations in Singapore in 2020, initially received a custody license in September 2021, but the amended laws of the Payment Services Act have now included custody services within its ambit.
When signing the MPI license, Hex Trust CEO Alessio Quaglini pointed to the fact that the Monetary Authority of Singapore has set high standards that are essential for the development of advanced financial services while also safeguarding clients’ rights.
New regulations and the growth of the market
Both BitGo and Ripple Labs managed to get in-principle approval for an MPI license, with the former receiving it in January and the latter in October.
At the same time, Hex Trust increased its presence in the regulated space and obtained a VSAP license in Dubai in June, enabling its markets division to provide broker-dealer services, investment services, and staking.
Hex Trust offers its services to its clients in the fields of banks, asset management companies, hedge funds, venture funds, pension funds, cryptocurrency exchanges, and issuers of CBDCs.
Supporting crypto companies like AAVE, Algorand, Chainalysis, Polygon, and Sandbox, Hex Trust raised $88 million in Series B funding on March 16, 2022. They ensure global compliance with licenses in Hong Kong, France, and Italy.
