On Wednesday, crypto custodian Hex Trust unveiled that it has attained in-principle approval from the Monetary Authority of Singapore (MAS) for a Major Payment Institution (MPI) license. This prestigious license empowers firms within Singapore to execute a range of payment services and handle Digital Payment Tokens (DPTs). The MPI licensing framework, established under the Payment Services Act of 2019 and revised in April 2024, now encompasses custodial services for DPTs.

The MAS license is regarded as a hallmark of regulatory excellence in the Asian crypto sector, with numerous leading firms, including BitGo and Ripple, striving for its acquisition.

Alessio Quaglini, CEO and co-founder of Hex Trust, shared that the landscape for unlicensed crypto entities is rapidly diminishing, making formal licensure an imperative for any serious market participant. “Entities will soon face a critical juncture: align with the regulatory framework, secure all requisite licenses, and operate within a regulated environment, or choose to remain in the unregulated sector,” Quaglini remarked in a CoinDesk interview.

Quaglini detailed that achieving this milestone in the MAS licensing process was a protracted journey commencing in 2020. Despite the significant investment of time and resources, the outcome is deemed highly advantageous for the firm. “Our dedication is unwavering. We are resolved to be on the right side of regulatory compliance, securing licenses in pivotal jurisdictions,” he asserted.

This development follows Hex Trust’s recent achievements in Dubai, where it has broadened its licensing to offer a full suite of Virtual Asset services, including broker-dealer functions and regulated Staking Services. Additionally, in May, Hex Trust launched USDX, a native stablecoin on the Layer-1 blockchain Flare.