GRVT receives a license in Bermuda and becomes the first regulated decentralized exchange

What’s new? Blockchain derivatives platform GRVT has received a business license to provide digital asset services from the Bermuda Monetary Authority (BMA). According to a press release, this makes GRVT the world’s first regulated decentralized crypto exchange (DEX).

Press release

What else is known? So far, GRVT has been granted a Class M crypto service provider license under the Bermuda Digital Asset Business Act (DABA). The company still has to fulfill prerequisites before it can officially launch and begin serving select corporate clients.

In the coming months, GRVT will work towards obtaining a full Class F license with the aim of launching a global institutional perpetual futures exchange in the jurisdiction.

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The company stressed that this development paves the way for widespread institutional adoption of decentralized finance (DeFi) protocols.

GRVT explained that currently, without a clear regulatory framework, many traditional financial institutions remain hesitant to partner with DeFi platforms for fear of compliance, security, and consumer protection risks.

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GRVT co-founder and CEO Hong Yea called Bermuda a pioneer in ensuring clear regulation of the digital asset market. He said regulatory compliance for crypto firms and DeFi protocols is paramount, without which it is impossible to gain institutional trust, mass adoption, and sustainable industry growth.

The company expects others in the DeFi sector to also apply for a license from the BMA as the regulator aims to engage with innovative crypto companies.

GRVT, founded in Singapore in 2022 by Hong Yea, Aaron Ong, and Matthew Quek, uses zero-knowledge (ZK) technology. It received investment from zkSync protocol developer Matter Labs and was built and utilizes ZK Stack to process 600 000 transactions per second.

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Its distinctive feature is a model that combines the advantages of both centralized and decentralized exchanges — such exchanges are called Hybrid Exchanges (HEX). In particular, it is both centralized, providing a user-friendly interface and liquidity through the participation of market makers, and non-custodial — meaning it does not hold client funds.

In Bermuda, the exchange will operate through a division of GRVT International Limited. It will launch once the company has met the prerequisites required by the BMA.