A Singapore-based hybrid cryptocurrency exchange said that it was the first decentralised exchange to secure regulatory approval, having obtained a Class M digital asset business licence from the Bermuda Monetary Authority.

GRVT, which is pronounced “Gravity”, said it aimed to become the “Goldman Sachs on blockchain”.

The company said: “This milestone positions GRVT as the world’s first regulated DEX [decentralised exchange], setting a new global standard for decentralised finance and marking a pivotal moment in the industry’s evolution towards a more regulated and compliant approach – paving the way for mainstream and wider institutional adoption of DeFi [decentralised finance].”

GRVT has received a class M “modified” digital asset derivative exchange provider licence under Bermuda’s Digital Asset Business Act.

It said it would work with the BMA to satisfy the pre-operational conditions before formally launching and serving selected corporate customers.

GRVT International Ltd, which will be the operating entity of GRVT in Bermuda, has not yet commenced operation.

In the coming months, GRVT said it would be working towards upgrading to the Full Class F licence under DABA, aiming to launch its global institutional-grade perps (perpetuals) DEX in the jurisdiction.

The company said: “As the DeFi sector evolves, securing institutional and mainstream trust still remains a critical challenge. Without clear regulatory frameworks, many traditional financial institutions remain hesitant to engage with decentralised platforms, fearing risks related to compliance, security, and consumer protection.

“Regulatory approval is key to bridging this trust gap. By aligning innovation with legal oversight, DeFi platforms can offer the transparency and accountability that institutions require, helping to foster widespread adoption and drive the entire industry towards sustainable growth.”

Hong Yea, cofounder and chief executive of GRVT, was previously an executive director with Goldman Sachs in Hong Kong. Before that, he worked at Credit Suisse in the territory.

He said: “Bermuda is a pioneer in structuring and providing regulatory guidance for the digital asset market. Securing the licence from the BMA reinforces our commitment to bridging decentralised finance and regulatory compliance.

“We’ve always believed compliance should be the foundation for crypto and DeFi, not an afterthought. Without it, earning institutional trust – and bringing revolutionary technologies to the mainstream – becomes nearly impossible.”

David Burt, the Premier, said: “Bermuda is proud to be a leader in providing regulatory clarity to the digital finance sector. We are happy to see decentralised finance businesses like GRVT utilising our digital asset regulations and congratulate them on successfully completing our licensing process.

“The issuance of the first DABA licence for a decentralised exchange demonstrates the willingness of our regulator, the Bermuda Monetary Authority, to engage with the most innovative technologies and businesses in the digital finance sector.

“We look forward to more decentralised finance businesses choosing Bermuda as we continue to provide the regulatory clarity needed for the digital finance sector to continue to grow.”

While GRVT is pursuing a Full Class F licence in Bermuda, it said it was simultaneously actively engaging with regulatory authorities in multiple jurisdictions to advance its licensing efforts.

It said these initiatives included aligning with the Markets in Crypto-Assets framework in the European Union and collaborating with the Abu Dhabi Global Market, a financial centre that it added was known for its innovative approach to digital asset regulation.

Founded in 2022, GRVT is considered a hybrid exchange because it matches and stores data off chain and provides smart contract level guarantees of their execution on chain. Only actions impacting user funds, such as trades or account creation, are eventually pushed on chain by GRVT.

A decentralised exchange platform lets users trade cryptocurrency on a peer-to-peer marketplace without a central authority.