Hex Trust has received the first nod for a payment institution license in Singapore

Digital asset custodian Hex Trust has announced that it has received in-principle approval from Singapore's financial regulator for a Master Payment Institution (MPI) licence.

MPI's license allows HexTrust to offer regulated “digital payment token” services in the city-state, which includes custody and over-the-counter trading, HexTrust said in a July 24 statement.

“[The approval follows a] In a region with rapid fintech development, there is a growing demand among institutional clients for sophisticated and compliant digital asset management solutions.

Hex Trust—which set up an office and team in Singapore in 2020—received a license to provide custody services in September 2021, but recent amendments to the Payment Services Act have brought custody under the revised legal framework.

Hex Trust CEO Alessio Quaglini had to go through strict requirements to get the MPI license from the Monetary Authority of Singapore, which is known for its “strong regulatory requirements” that aim to balance innovation and consumer protection.

Digital asset protection firm Bitgo received in-principle approval for an MPI license in January, while blockchain payments company Ripple Labs received the same approval three months ago.

Meanwhile, Hex Trust received an additional virtual asset service provider license in Dubai in June, allowing its market business to offer broker-dealer and investment services.

Cointelegraph contacted Hex Trust for more information but did not receive an immediate response.

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Hex Trust serves banks, asset managers, hedge funds, venture capital firms, pension funds, cryptocurrency exchanges, and even central bank digital currency issuers.

He also supports or has supported native cryptocurrency organizations such as AAVE, Algorand, Chainalysis, Polygon and Sandbox.

Hex Trust raised $88 million in a Series B funding round on March 16, 2022, and has also acquired licenses in Hong Kong – where it is based – France and Italy.

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