What chemical reactions occur when blockchain technology meets traditional financial regulation? A custody license recently issued by the Monetary Authority of Singapore (MAS) is revealing the answer to this question. As the world's first RWA (Real World Assets) platform to obtain a triple license for capital market services, DigiFT's breakthrough path is worth deep reflection for every finance practitioner.

1. Compliance Breakthrough: The Gold Content of MAS's Triple License

In the traditional financial system, securities trading platforms must overcome three regulatory hurdles: trading venue license, capital market service license, and custody service qualification. DigiFT has achieved a breakthrough in this "impossible triangle" in three years, reflecting deep changes in Singapore's regulatory system.

  1. Compliance of underlying technology: The DPoS (Delegated Proof of Stake) mechanism built on Ethereum achieves regulatory penetration through an on-chain transparent ledger. Each transaction generates an audit trail that meets MAS standards, solving the "regulatory black box" problem in the DeFi space.

  2. Institutionalized service closed-loop: Comprehensive regulatory coverage from asset issuance and order matching to fund custody means institutional investors can operate digital assets like using traditional brokerage systems without worrying about compliance risks.

  3. Standardization of cross-chain interaction: The ERC-3475 protocol encapsulates various financial assets, supporting interoperability of different assets such as private credit funds, REITs, and money market funds. This "financial Lego" architecture allows private credit funds valued at over $6.3 billion to be smoothly brought on-chain.

2. Business Closed Loop: Breaking the "Impossible Triangle" of RWA

Traditional asset tokenization faces three major pain points: liquidity dilemmas, compliance barriers, and technical thresholds. The "Iron Triangle" model constructed by DigiFT provides innovative solutions:

1. Liquidity Engine

  • Automated Market Maker (AMM) mechanism achieves continuous quoting 24/7

  • Dynamic collateral adjustment system balances liquidity and risk exposure

  • Institutional-level dark pool for large trades, with a single transaction capacity of $50 million

2. Compliance Firewall

  • Smart contracts automatically execute KYC/AML verification

  • Qualified investor certification system directly connected to Singapore ACRA (Accounting and Corporate Regulatory Authority)

  • On-chain data sandbox opens real-time monitoring to regulators

3. Technology Middle Platform

  • Zero-Knowledge Proofs (ZKP) protect transaction privacy

  • Cross-chain bridge supports multi-chain asset conversion

  • Asset oracle connects to authoritative data sources like Bloomberg and Reuters

This trinity architecture allows UBS's money market fund to achieve T+0 real-time redemptions, reaching liquidity levels that traditional financial products find hard to achieve.

3. Institutional Entry: The On-Chain Migration of Traditional Finance

Collaborative cases with giants like Invesco and UBS reveal the underlying logic of how Wall Street's traditional players are laying out their plans for on-chain finance:

Case 1: Tokenization of Invesco's private credit fund

  • Splitting $6.3 billion in assets into minimum investment units of $10,000

  • Smart contracts automatically execute priority/mezzanine return distribution

  • Quarterly dividends are received in real-time through stablecoins

Case 2: UBS Money Fund "uMINT" Plan

  • Fund share tokens pegged 1:1 to the US dollar

  • Real-time net asset value calculation system with errors less than 0.1%

  • Institutional investors can redeem up to $200 million in a single day

These innovations not only improve efficiency but more importantly create a new paradigm for value exchange. The "asset programmability" achieved through tokenization allows private market products to possess liquidity characteristics akin to public funds for the first time.

4. Regulatory Sandbox: Singapore's Financial Chessboard

The issuance of this license by MAS is by no means an isolated event; behind it is Singapore's top-level design to construct "on-chain Wall Street":

  1. Legal framework innovation: The Payment Services Act clearly classifies digital assets as capital market products, granting them the same legal status as traditional securities.

  2. Infrastructure layout: The Project Guardian initiative has attracted 87 financial institutions to participate, testing complex products like tokenized foreign exchange and derivatives.

  3. Talent strategy reserve: The National University of Singapore has launched the world's first RWA engineer certification course, with an annual training scale of 2,000 people.

This combination of "regulatory preemption + ecosystem cultivation" gives Singapore a unique competitive advantage in the RWA track. Data shows that the on-chain asset scale handled by Singapore reached $47 billion in 2024, with an annual growth rate exceeding 300%.

5. Future Landscape: The Critical Point of Compliance for Digital Assets

The success of the DigiFT model validates three key trends:

  1. Regulatory integration: Compliance interfaces between DeFi (Decentralized Finance) and TradFi (Traditional Finance) are forming, with regulatory technology (RegTech) becoming new infrastructure.

  2. Value reconstruction: The characteristics of asset fragmentation, enhanced liquidity, and automated management achieved through tokenization are reshaping the value chain of the asset management industry.

  3. Ecosystem evolution: From single asset on-chain to cross-market value networks, RWA infrastructure is beginning to show platformized and protocolized features.

When BlackRock CEO Larry Fink predicted "all assets will be tokenized," he may have been envisioning the future that DigiFTs are building. In this new world, compliance is not a shackle of innovation but a passport for value circulation. This financial experiment in Singapore is opening a door to the future for global capital markets.