DigiFT completes the inaugural listing of a regulatory-compliant security token with an Automatic Market Maker trading mechanism on the Ethereum blockchain.
DigiFT has successfully listed a one-month security token issued by Diners Club (Singapore) Private Limited (“DCS”) on August 1st, 2022. It is the first launch of a regulatory-compliant security token on a public chain (Ethereum) with an Automatic Market Maker (AMM) liquidity pool.
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Unlike a conventional exchange, the AMM automatically provides sufficient market liquidity without requiring active market makers to list buy and sell orders. With AMM, liquidity providers contribute their security tokens into liquidity pools managed by a smart contract and earn commissions when traders swap the security tokens.
DigiFT, founded in 2020 by Wanli Li and Henry Zhang, is striving to be the first regulated decentralized security trading exchange and is currently operating in the Monetary Authority of Singapore’s FinTech Regulatory Sandbox (“Sandbox”) as an exempt Recognised Market Operator with a Capital Markets Services Licence. The blockchain-based exchange is the first decentralized finance trading platform admitted into 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.
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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 U.S. financial services. The company has a cardmember base of approximately 250,000 in Singapore as of June 2022.
Mr. Henry Zhang, the CEO of DigiFT, shared, “The completion of the maiden security token offering on our decentralized exchange is a major milestone. Our clients now are the first in the world that can trade real-world assets on a public blockchain. We enable companies to access an alternate source of capital and provide secondary liquidity for investors simultaneously. It showcases our team’s technology and financial expertise while highlighting the value proposition of blockchain technology when applied to finance in a regulatory-compliant manner.”
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