MetaComp, a prominent digital asset platform based in Singapore, has launched an innovative service, enabling clients to invest in traditional securities like money market funds and U.S. Treasury bills using stablecoins. This is achieved by the platform converting the stablecoins into fiat currency on behalf of its customers.
This trailblazing service is touted as a first in the Singaporean market. Since its inception just a month ago, the platform has seen trading volumes rise to an impressive $50 million. The initiative accepts prominent stablecoins such as tether (USDT) and USD Coin (USDC), with Bo Bai, the co-founder of MetaComp, confirming that the service has attracted as many as 10 institutional and accredited investors.
Tether, as a stablecoin, has seen vast trading volumes, recently recording a turnover of $22.6 billion in a 24-hour period. This exceeds the combined volumes of both bitcoin and ether. USDC also holds significant market traction, recently seeing a turnover of $3.5 billion.
Elucidating the vision behind MetaComp’s unique offering, Bai stated, “The industry needs a seamless platform that allows investors to allocate their assets smoothly between traditional finance products such as money market funds and decentralized finance products like bitcoin options.” This initiative aims to provide investors with the advantages of both traditional and decentralized finance.
Bai envisions a pivotal role for stablecoins, which derive their value from real-world assets like the U.S. dollar, in the broader financial ecosystem. Under this presumption, MetaComp is strategically gearing its business model.
To operate this service legally, both MetaComp and its parent entity, MetaVerse Green Exchange, are required to possess three specific licenses from Singapore’s central bank, the Monetary Authority of Singapore. These licenses include the Capital Markets Services Licence, Recognised Market Operator Licence, and Major Payment Institution Licence.
Holding these three licenses bestows MetaComp with the capability to offer this exclusive service, making it a pioneer in Singapore, according to Bai. He added, “As a licensed platform with securities, custodial services, and digital payment token licenses, MetaComp and its parent company are committed to pioneering a platform, termed the ‘Client Asset Management Platform’, to ensure smooth asset allocation in both fiat and stablecoins.”
The only other institution in Singapore reported to have all three licenses is DBS Bank. However, the bank, through its head of digital assets, Evy Theunis, revealed that they haven’t initiated this service for their clientele yet.
Due to confidentiality agreements, MetaComp has refrained from disclosing the identities of its investors.