Hex Technologies (Hex Trust), a Hong Kong-based digital asset custodian, has received in-principle approval from the Monetary Authority of Singapore (MAS) for a major payment institution (MPI) licence.

The licence would allow Hex Trust to offer regulated digital payment token (DPT) services in Singapore, namely the custody and over-the-counter trading of DPTs. The expansion caters to a growing institutional client demand for sophisticated and compliant digital asset management solutions in a region experiencing rapid fintech development.

“The in-principle approval of this licence is underpinned by Hex Trust’s long-standing commitment to compliance and operational excellence, and to Singapore,” says the firm’s managing director Calvin Shen. “We are not only reinforcing our leading role in working closely with regulatory bodies, but also enhancing our capability to safeguard and optimize the digital assets of our institutional clients with regulatory clarity.”

“The [MAS] upholds rigorous regulatory standards that balance fostering innovation with ensuring consumer protection. We are thrilled to strengthen our presence in Singapore – a vibrant hub for fintech innovation, renowned for its outstanding regulatory framework," adds Hex Trust Group co-founder and chief executive officer Alessio Quaglini.

With a dedicated office and team established in Singapore since 2020, Hex Trust says it is poised to unlock new capabilities for Singapore-based institutional and corporate clients, further positioning the city-state as a regional hub for blockchain innovation. 

On April 2 2024, the MAS introduced amendments to the Payment Services Act (PS Act), which brought activities such as the provision of custodial services for DPTs within the scope of regulation. Hex Trust has been granted a temporary exemption from holding a licence under the PS Act for providing DPT service caught under the expanded scope of regulated activities for a specified period.

The in-principle approval of a licence in Singapore follows Hex Trust’s recent success in securing an additional licence in Dubai, which now permits its markets arm to offer comprehensive virtual asset services, including broker-dealer and management and investment services, along with regulated staking services.