Photo credit: Mike Enerio/Unsplash

The Monetary Authority of Singapore (MAS), the city state’s central bank and top financial regulator, has granted an initial nod to crypto custodian Hex Trust for a major payment institution (MPI) license.

Singapore’s Major Payment Institution licenses allow companies to offer various payment services, including handling digital currencies like Digital Payment Tokens (DPT). These licenses were created under the Payment Services Act of 2019 and were recently updated in April 2024 to include services for storing digital currencies.

The permit would allow Hex Trust to conduct DPT custody and over-the-counter (OTC) trading, the company said in a July 24 statement.

The firm, which has already held a custody services license in Singapore since 2021, said the expansion of its permit will cater to the institutional demand for digital asset management solutions “in a region experiencing rapid fintech development.”

The MAS’s license has become a coveted benchmark for crypto regulation in Asia, attracting applications from major industry players like BitGo and Ripple.

“The Monetary Authority of Singapore upholds rigorous regulatory standards that balance fostering innovation with ensuring consumer protection, said Alessio Quaglini, co-founder and CEO of Hex Trust Group.

The executive expressed optimism as the firm strengthened its presence in Singapore, describing the country as a vibrant hub for fintech innovation and known for its “outstanding” regulatory framework.

Hex Trust has been actively expanding its regulatory approvals across multiple jurisdictions. Last year, the firm obtained a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Asset Regulatory Authority (VARA). Subsequently, it secured a second license in Dubai, broadening its services beyond custody to include broker-dealer, management, and investment services, including regulated staking, for institutional and qualified investors.

In May, Hex Trust unveiled USDX, the first native stablecoin on the Flare blockchain.