Singapore-based MetaComp has pioneered a groundbreaking offering in the world of digital asset trading by allowing clients to purchase traditional securities, such as money market funds and U.S. Treasury bills, using stablecoins. This initiative marks a significant development in Singapore’s financial landscape.
Stablecoins Unlock Traditional Securities
MetaComp facilitates the acquisition of traditional securities by accepting stablecoins like Tether (USDT) and USD Coin (USDC) from up to 10 institutional and accredited investors. This innovative service, initiated last month, has already witnessed trading volumes approaching $50 million, with accessibility extended across Asia.
Stablecoins, digital assets pegged to real-world assets like the U.S. dollar, underpin the crypto trading ecosystem. Tether, for instance, boasts the highest trading volume in the cryptocurrency market, surpassing even Bitcoin and Ethereum combined. USDC ranks fourth in trading volume, underscoring the pivotal role of stablecoins in crypto markets.
MetaComp’s Vision for Asset Allocation
MetaComp envisions a seamless platform enabling investors to allocate assets effortlessly between traditional financial (TradFi) products, such as money market funds, and decentralized financial (DeFi) products, like Bitcoin options. By bridging the gap between these two financial worlds, MetaComp aims to empower investors with the advantages of both TradFi and DeFi.
MetaComp foresees stablecoins playing a broader role in the traditional financial market. The platform operates under the belief that stablecoins will integrate into the real economy, offering new possibilities for financial applications beyond the crypto sphere.
Regulatory Compliance and Licensing
To offer this service, MetaComp and its parent company, Metaverse Green Exchange, have secured three licenses from the Monetary Authority of Singapore, including the Capital Markets Services Licence, Recognised Market Operator Licence, and Major Payment Institution Licence. This regulatory framework ensures MetaComp’s ability to operate as a licensed platform offering a Client Asset Management Platform for seamless asset allocation in fiat and stablecoins.
MetaComp asserts that it is the first entity in Singapore to hold all three essential licenses required to provide such a service. DBS Bank is the only other institution in Singapore with a similar licensing arrangement, but it has not yet initiated this offering to its clients, according to Evy Theunis, DBS’ head of digital assets.
As MetaComp respects client confidentiality, the identities of the participating investors remain undisclosed.