Plume Subsidiary KDAB Receives Bermuda License for Regulated On-Chain Vault

Plume, a blockchain project specializing in regulated real-world assets (RWA), announced today that its Bermuda-based subsidiary, KDAB, has secured a Class M Digital Asset Business License from the Bermuda Monetary Authority (BMA). The approval positions KDAB as the first operator of a regulated on-chain vault in the industry.

Bermuda’s Growing Role in Crypto Regulation

Bermuda has become a notable jurisdiction for digital asset regulation, with the BMA granting licenses to major firms such as Circle, Coinbase, and Kraken. Plume’s subsidiary now joins this select group, marking a significant step for the company’s ambition to bridge traditional finance with blockchain-based asset management.

According to the announcement, KDAB’s vault will hold regulated funds and high-quality assets sourced from the United States, Hong Kong, and other major financial markets. The license allows the subsidiary to operate a custody and management platform that meets Bermuda’s stringent compliance standards.

Bringing the ETF Model On-Chain

Plume CEO Chris Yin described the vault as a move to bring the exchange-traded fund (ETF) model—widely considered the last major structural innovation in asset management—into an on-chain environment. The approach aims to combine the transparency and programmability of blockchain with the legal protections of regulated financial infrastructure.

Yin emphasized that the vault is designed for institutional and qualified investors, focusing on assets that meet rigorous legal and compliance criteria. The company sees this as a natural evolution of the RWA sector, which has grown rapidly as blockchain technology seeks to tokenize traditional financial instruments.

Implications for the RWA Market

The development signals increasing regulatory clarity for tokenized assets in jurisdictions like Bermuda. For Plume, the license provides a competitive edge in attracting institutional clients who require a regulated environment for on-chain asset storage and management. The move also reflects broader industry trends, as more blockchain firms pursue formal licensing to build trust with traditional financial partners.

Industry observers note that Bermuda’s proactive regulatory framework has made it a hub for digital asset innovation, particularly for companies seeking to operate within clear legal boundaries. The BMA’s Class M license is specifically designed for digital asset businesses, covering activities such as custody, trading, and issuance.

Conclusion

Plume’s KDAB subsidiary has obtained a Class M license from the Bermuda Monetary Authority to operate a regulated on-chain vault, becoming the first of its kind in the industry. The license aligns the company with major crypto firms already licensed in Bermuda and positions it to serve institutional clients seeking compliant blockchain-based asset management. The move highlights the growing convergence of traditional financial structures, such as the ETF model, with decentralized technology under regulatory oversight.

FAQs

Q1: What is a Class M Digital Asset Business License in Bermuda?
A Class M license is issued by the Bermuda Monetary Authority for digital asset businesses, allowing them to conduct activities like custody, trading, and issuance under a regulated framework. It is considered one of the more comprehensive licenses for crypto firms globally.

Q2: What does a regulated on-chain vault mean?
A regulated on-chain vault is a digital custody solution that holds assets on a blockchain while operating under formal financial regulation. It combines the security and transparency of blockchain with legal protections and oversight from a government authority.

Q3: Why is this development significant for the RWA sector?
It demonstrates that real-world asset tokenization can be executed within a licensed, regulated environment, which builds trust with institutional investors. It also sets a precedent for other blockchain projects seeking to offer compliant asset management services.