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Propine, a crypto-custody provider and securities firm, has been given the green light to operate in Singapore.

The Singapore-based firm recently graduated from the Monetary Authority of Singapore’s fintech regulatory sandbox program, emerging with a Capital Markets Services License (CMS), Cointelegraph reports.

Companies must hold a CMS to engage in business activities regulated under the island state’s Securities and Futures Act. Propine will offer a range of services, including digital-asset custody, trade settlement facilitation, asset servicing and services catering to global securities issuers.

Propine CEO Tuhina Singh said the regulatory clarity provided by the MAS could facilitate institutional involvement in tokenization and cryptocurrency: “Having a clear regulatory framework is of vital importance for the safe development of security token. This allows hesitant but eager institutions waiting on the sidelines, to be able to participate in tokenization. Compliant infrastructure is a rock bed on which the foundations of the security token ecosystem are created.”

Sopnendu Mohanty, chief fintech officer at the MAS, said the digital-asset industry is expanding rapidly and that regulators need to establish legal safeguards to foster trust in the sector.