DigiFT successfully listed a one-month security token issued by Diners Club (Singapore) Private Limited (“DCS”) on August 1, 2022. It is the first launch of a regulatory compliant security token on a public chain (Ethereum). an Automatic Market Maker (AMM) liquidity pool.
Unlike a traditional exchange, the AMM automatically provides sufficient market liquidity without active market makers having to list buy and sell orders. With AMM, liquidity providers contribute their security tokens to liquidity pools managed by a smart contract and earn commissions when traders exchange the security tokens.
DigiFT, founded in 2020 by Wanli Li and Henry Zhang, aspires to become the first regulated decentralized securities exchange and currently operates in the FinTech Regulatory Sandbox (“Sandbox”) of the Monetary Authority of Singapore as an exempt recognized market operator with a capital license for market services. The blockchain-based exchange is the first decentralized financial trading platform to enter the sandbox. It facilitates the primary offering and secondary trading of security tokens backed by financial assets. As a result, investors can trade directly from their digital wallets after completing a know-your-client onboarding process.
DCS is a franchisee of Diners Club International Ltd., a direct banking and payment services company owned by Discover Financial Services, one of the most recognized brands in US financial services. The company has around 250,000 card members in Singapore (as of June 2022).
Mr. Henry Zhang, the CEO of DigiFT, shared: “The completion of the first offering of security tokens on our decentralized exchange is an important milestone. Our clients are now the first in the world to be able to trade real assets on a public blockchain. We enable companies to access an alternative source of capital while providing secondary liquidity for investors. It showcases our team’s technology and financial expertise while underscoring the value proposition of blockchain technology when deployed in a regulatory compliant manner in finance.”
DigiFT aims to offer regulated decentralized finance solutions on the Ethereum public blockchain. We’re launching the first regulation-compliant exchange for digital assets. Asset owners can issue blockchain-based security tokens on our platform and investors can trade with continuous liquidity via the automatic market-maker mechanism. We are a global company backed by established venture partners. The founding team comes from Goldman Sachs, UBS, Citibank and Morgan Stanley. It has in-depth knowledge of blockchain technology and has a history of successfully developing digital asset and product exchanges.
Photo by Lee Aik Soon on Unsplash
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