Bermuda Monetary Authority in licence first
DerivaDex, the community-governed derivatives exchange, has been granted a Digital Asset Business Licence by the Bermuda Monetary Authority, marking the first time a Decentralised Autonomous Organisation-governed decentralised derivatives exchange has received formal regulatory approval, the company has said.
The milestone establishes a global precedent for non-custodial trading infrastructure, opening the door for banks, hedge funds and asset managers to access crypto derivatives within a recognised legal framework.
The milestone also marks a defining moment for DerivaDex itself.
“This licence removes the final barrier preventing institutions from participating in decentralised derivatives markets,” said Aditya Palepu, chief executive of Dex Labs. “For the first time, they can trade with regulatory confidence, retain control of their assets and operate within a governance framework that’s fully transparent and ensures market integrity.”
Longtime professionals from top trading and technology platforms, including DRW and ConsenSys, were the founders of DerivaDex, which is backed by investors such as Polychain Capital, Dragonfly Capital Partners, Electric Capital and CMS Holdings.
DerivaDex said the founding team's institutional and regulatory experience shaped the platform's design, which combines high-speed trading performance with a fully transparent governance structure.
David Burt, the Premier and Minister of Finance, commented: “The future of digital finance depends on establishing a strong foundation of compliance, regulation and customer protections in decentralised markets.
“Bermuda is committed to supporting decentralised financial institutions that share these same principles.
“DerivaDex's licence demonstrates this support and also showcases [the BMA’s] sophistication in digital assets and ability to regulate innovative financial products.”
The company added: “In the wake of high-profile exchange failures that underscored the risks of centralised custody, DerivaDex represents a new generation of regulated, non-custodial trading designed to eliminate single-entity control and improve market transparency and integrity.
“The platform ensures users maintain full custody of assets while meeting regulatory obligations under BMA oversight, bridging the gap between traditional market structure and decentralised finance.”
• For more on DerivaDex, see Related Media
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