Key Highlights
- Plume obtained a Class M digital asset license from the Bermuda Monetary Authority through its subsidiary KDAB.
- The company said the approval makes KDAB the first regulated on-chain vault manager under Bermuda’s framework.
- The vault model uses smart contracts and segregated accounts to manage tokenized investment products without traditional custodians.
Plume, a specialized Layer 2 blockchain, today received a Class M digital asset license from the Bermuda Monetary Authority for its subsidiary firm, Kimber Digital Assets Bermuda ISAC Limited.
According to the official release, the license makes KDAB the first regulated on-chain vault manager under Bermuda’s Digital Asset Business Act 2018. The move places Plume among a few digital asset companies, like Circle, Coinbase, and Kraken, to use Bermuda’s regulatory structure for its operations worldwide.
According to the company, the vaults are designed to function similarly to exchange-traded funds. Investors deposit assets into a vault and receive tokens representing a proportional interest. Those tokens can accrue returns and be redeemed based on net asset value.
Unlike traditional funds, the structure does not rely on a separate custodian or administrator. Instead, assets are held in non-custodial smart contracts and managed under predefined protocol rules.
Plume said the KDAB vaults would be open for anyone who has an internet connection and a compatible wallet and does not have to sign up for a regular brokerage firm. This ensures global accessibility at any hour, and vault tokens can be put to work as collateral within the DeFi ecosystem.
Vault structure and compliance
The vaults will be backed by regulated money and high-quality assets originating from regions such as the US and Hong Kong. KDAB will use anti-money laundering policies in line with those required for stablecoins by the laws of Bermuda and the US GENIUS Act.
Every vault will function using its own ISA (Incorporated Segregated Account), providing statutory ring-fencing, separate legal personality, and bankruptcy remoteness.
Bermuda’s regulatory demands will ensure the implementation of asset and liability management strategies, liquidity risk management measures, and wind-down processes. Vault balances will be kept in non-custodial smart contracts with ongoing proof-of-collateral attestations from Bluprynt. Smart contracts will be immutable and non-upgradable at the asset control level.
Plume has highlighted its protocol-based AML/ATF checks with a transaction blocking rate of only 0.000005%. The firm expects to announce the first KDAB vaults regulated by the BMA in the next few days and weeks. This model is described by the firm as one that serves as a bridge between U.S.-registered master funds and international investors via vault tokens.
Bermuda’s digital asset push
In a recent development, the Government of Bermuda, along with the Stellar Development Foundation, has stated that they are going to transfer important financial services of the nation onto the Stellar network.
This is an initial step towards the realization of the goal of Bermuda being the first-ever country in the world to have a completely on-chain economy. It is based on the Digital Asset Business Act of 2018, which has made regulations for digital assets in Bermuda. According to the plan by Bermuda’s government, the nation aims to become a completely on-chain economy, which was first introduced in Davos in January 2026.
RWA’s increasing demand from institutions
The approval comes at a time when the tokenized real-world assets segment is witnessing growing interest from institutions.
The action taken by Plume can be attributed to the prevailing trend in the industry, where projects are looking for regulatory certainty before scaling operations in order to meet regulatory requirements and protect investors. The effect of the new vaults introduced by Plume can only be determined after product launches and market acceptance.
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