Crypto custodian Hex Trust announced on Wednesday that it has received approval in principle for its Major Payment Institution license from the Monetary Authority of Singapore (MAS). This approval will enable Hex Trust to provide regulated and trustworthy Digital Payment Token services in Singapore.

Major Payments Institution licenses provide a comprehensive regulatory framework for financial technologies and digital payment systems in Singapore. These licenses allow companies to offer various payment services and transact with Digital Payment Tokens.

This licensing regime, established under the Payment Services Law in 2019, was expanded to include custody services for SPOs with the update made in April 2024. With this update, Singapore’s financial regulations have become even more comprehensive to ensure safe and regulated management of crypto assets.

MAS’s license is considered a gold standard in the crypto industry in Asia. Many major crypto firms are competing to obtain this prestigious license, such as BitGo and Ripple. This shows that Hex Trust being approved by MAS is a significant success for the company and strengthens its competitive position in the industry.

Alessio Quaglini, CEO and co-founder of Hex Trust, stated that the gray area operating with unlicensed crypto assets is gradually narrowing and obtaining a license has become inevitable for serious players in the industry. “Companies are going to really have to make a choice at a certain point, very soon,” Quaglini said.

Do I want to be on the right side of the white spectrum, get all the licenses, and run a fully regulated business? Or do I want to be on the other side of the spectrum, outside of regulation?” he said. This statement highlights the importance of complying with regulations and meeting legal requirements in the crypto industry.

Quaglini stated that reaching the MAS licensing process is a multi-year process and this process started in 2020. Although this process required significant cost and effort, Hex Trust said that this step was valuable and strengthened their position in the industry. “Our commitment is clear. We want to be on the right side of the spectrum. We are determined. We want to ensure compatibility. “We are looking to obtain licenses in key jurisdictions,” he added.

This announcement follows Hex Trust’s success in expanding its licenses in Dubai. Licenses in Dubai allow the company’s markets arm to offer comprehensive Virtual Asset services, operate as an intermediary and offer regulated Staking Services. These developments show that Hex Trust continues to expand internationally and provide regulated services.

In May, Hex Trust also launched USDX, a native stablecoin on the Layer-1 blockchain Flare. This new product reinforces the company’s innovative approach to digital assets and blockchain technologies and its strong presence in the industry.