Bermuda

DeFi

Plume

<h2 id="b-tldr-b">TLDR:</h2>
<ul>
 <li>Plume’s subsidiary KDAB becomes the world’s first regulated onchain vault manager under Bermuda’s DABA framework.</li>
 <li>The Class M license subjects KDAB to full prudential oversight, including liquidity risk and wind-down planning requirements.</li>
 <li>KDAB vault tokens are accessible to anyone globally with a smartphone, stablecoin, and an internet connection.</li>
 <li>Plume reports a blocked transaction rate of 0.000005%, far below the roughly 1% average across other public blockchains.</li>
</ul>
Plume, a blockchain focused on real-world asset tokenization, <a href="https://plume.org/blog/plume-secures-bermuda-digital-asset-licence-launching-the-worlds-first-regulated-vaults" rel="noopener noreferrer nofollow">has obtained</a> a Class M Digital Asset Business License from the Bermuda Monetary Authority. 
Its subsidiary, Kimber Digital Assets Bermuda ISAC Ltd. (KDAB), becomes the world’s first regulated onchain vault manager. 
The license was granted under Bermuda’s Digital Asset Business Act 2018, placing KDAB under full prudential oversight.
<h2 id="b-kdab-joins-a-select-group-of-regulated-digital-asset-firms-b">KDAB Joins a Select Group of Regulated Digital Asset Firms</h2>
The Bermuda Monetary Authority license puts KDAB alongside globally recognized firms. Circle, Coinbase, and Kraken have also chosen<a href="https://blockonomi.com/bermuda-taps-stellar-network-to-build-the-worlds-first-fully-onchain-national-economy/" rel="noopener noreferrer nofollow"> Bermuda’s</a> regulatory framework for their operations. This positions the BMA as one of the most rigorous digital asset supervisors worldwide.
KDAB’s model draws a direct comparison to the exchange-traded fund structure. Users deposit assets, receive proportional shares, earn yield, and redeem at net asset value. 
Unlike traditional funds, the entire process runs through immutable smart contracts with no custodians or administrators involved.
A curator manages and rebalances assets within fixed, hardcoded rules. This preserves investment judgment while eliminating the ability to override structural contract protections. 
The design reduces administrative key vulnerabilities that have caused most recent DeFi security incidents.
Plume Co-Founder and CEO Chris Yin explained the vision behind the product, stating: “The ETF democratised investing for anyone with a brokerage account. We are democratising it for everyone else. A lawyer in Lagos, a freelancer in Manila, or a small business owner in São Paulo can access that yield in seconds with a smartphone and a <a href="https://parameter.io/wall-street-raises-alarm-over-tether-and-circles-stablecoin-stability/" rel="noopener noreferrer nofollow">stablecoin,</a> with the same regulatory protections that a pension fund in London expects.”
<h2 id="b-prudential-oversight-and-aml-standards-set-a-new-compliance-benchmark-b">Prudential Oversight and AML Standards Set a New Compliance Benchmark</h2>
Each KDAB vault operates through its own incorporated segregated account under Bermuda’s 2019 ISA Act. This provides statutory ring-fencing, separate legal personality, and full bankruptcy remoteness for every vault. <a href="https://moneycheck.com/u-s-dollar-climbs-to-four-week-peak-as-federal-reserve-rate-hike-expectations-soar/" rel="noopener noreferrer nofollow">Reserves</a> are held onchain with cryptographically verifiable proof of collateral.
The BMA’s prudential standards require net asset requirements, liquidity risk management, and wind-down planning. These measures ensure each account can meet vault token holder expectations at all times. 
Plume General Counsel Salman Banaei noted the regulatory achievement, saying: “The framework that the BMA has applied for KDAB represents an important milestone in the developing global onchain capital markets.”
On the compliance side, KDAB maintains a comprehensive AML programme supervised directly by the BMA. Continuous transaction monitoring and wallet-level screening apply regardless of which blockchain protocols vault tokens are bridged to. Freeze-and-seize capabilities are embedded directly into the vault token itself.
Teddy Pornprinya, Plume Co-Founder and Chief Business Officer, added: “With this level of regulatory alignment we will be able to distribute high-quality assets to a broad audience globally, removing high barriers to entry and fulfilling the original promise of onchain finance of accessibility.”
Plume reports a blocked transaction rate of just 0.000005%, compared to roughly 1% across other <a href="https://coincentral.com/big-tech-to-enter-crypto-wallet-wars-as-fortune-100-embrace-blockchains-by-2026/" rel="noopener noreferrer nofollow">public blockchains,</a> reflecting the strength of its compliance infrastructure.
The post <a href="https://blockonomi.com/plumes-bermuda-license-makes-kdab-the-worlds-first-regulated-onchain-vault-manager/" rel="noopener noreferrer nofollow">Plume’s Bermuda License Makes KDAB the World’s First Regulated Onchain Vault Manager</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Plume’s Bermuda License Makes KDAB the World’s First Regulated Onchain Vault Manager

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