The Bermuda Monetary Authority (BMA) has granted its first DAO, or Decentralized Autonomous Organization, license.
According to a release, DerivaDEX has received a Digital Asset Business License for a DAO-governed decentralized derivatives exchange.
Honourable E. David Burt, JP, MP, Premier of Bermuda, said the future of finance rewquires a strong foundation of regulation including decentralized markets.
“Bermuda is committed to supporting decentralized financial institutions that share these same principles. DerivaDEX’s license demonstrates this support and also showcases our regulator, The Bermuda Monetary Authority’s sophistication in digital assets and ability to regulate innovative financial products.”
DerivaDEX aims to build the future of derivatives trading by combining institutional-grade performance with decentralized architecture. The platform expects to launch toward the end of this year.
DerivaDEX is backed by investors such as Polychain Capital, Dragonfly Capital Partners, Electric Capital, and CMS Holdings.
Aditya Palepu, CEO of DEX Labs, called the approval a defining moment for DerivaDEX.
“This license removes the final barrier preventing institutions from participating in decentralized derivatives markets.”
Palepu described Bermuda as taking a pragmatic approach to regulating digital asset markets.
Kendaree Burgess, Managing Director, Bermuda Business Development Agency (BDA), commented:
“The BMA’s approval of DerivaDEX demonstrates what’s possible when thoughtful regulation meets technological advancement — proving that we can balance progress with accountability and create the frameworks the future of finance will rely on. It also highlights the power of advocacy and collaboration within Bermuda’s ecosystem, and our commitment to amplifying these milestones to enable continued innovation and sustainable growth across the industry.”
