DigiFT launches the first regulation-abiding digital token exchange

DigiFT launches the first regulation-abiding digital token exchange

Singapore-based financial service provider, DigiFT Tech, has reportedly announced that it has successfully listed a decentralized digital asset listed by Singapore-based financial institution, Diners Club (Singapore) Pte Ltd, (DCS).

S per reports, this is the first rollout of a regulatory-compliant digital token on Ethereum, a public chain, with an AMM (Automatic Market Maker) liquidity pool.

Contrary to conventional exchanges, the AMM offers adequate market liquidity automatically, without requiring any list, buy, as well as sell orders from active market makers. Through AMM, liquidity providers put up their security tokens in liquidity pools that are managed by smart contracts and then earn commissions on them when traders exchange the security tokens.

Founded back in 2020 by Henry Zhang and Wanli Li, DigiFT is striving to become the first decentralized, regulated security token trading exchange. It currently operates as an exempt RMO (Recognised Market Operator) that possesses a CMS Licence within Singapore Monetary Authority's FinTech Regulatory Sandbox.

Supposedly, the blockchain-based security exchange is the first decentralized trading platform that has been admitted to the Sandbox. It enables the primary offering as well as secondary trading of digital security tokens supported by financial assets.

Investors can directly trade from their respective digital wallets after they complete their know-your-client onboarding formalities.

DCS, a Diners Club International Ltd. franchisee, is a direct banking as well as payment services firm that is owned by a leading U.S. financial services brand, Discover Financial Services. As of this June, the firm boasts of a cardmember base of more than 250,000 within Singapore.

DigiFT CEO, Henry Zhang, haled the listing of the firm’s maiden security token on its decentralized exchange as a major milestone. The company’s clients would now be the world’s first to trade real-world assets on Ethereum.

Zhang added that DigiFT enables other enterprises to access a stand-in source of capital, while simultaneously offering secondary liquidity for the investors. This showcases the financial and technology expertise of the DigiFT team while also highlighting the overall value proposition of blockchain when implemented to finance in a manner that is regulatory-compliant.

Source credit: https://www.prnewswire.com/in/news-releases/digift-launches-decentralized-security-token-exchange-876453457.html