Plume, a blockchain platform focused on the tokenization of real-world assets, has obtained a digital asset business license for its subsidiary, Kimber Digital Assets Bermuda ISAC Ltd. (KDAB), from the Bermuda Monetary Authority (BMA). This development enables Plume to operate what it terms the world’s first regulated onchain vault manager. The Class M license, issued under Bermuda’s Digital Asset Business Act 2018, mandates stringent prudential oversight for KDAB, encompassing requirements for net assets, liquidity risk management, and comprehensive wind-down planning.
Key Takeaways
- Plume’s Bermuda subsidiary, Kimber Digital Assets Bermuda ISAC Ltd. (KDAB), has been granted a Class M Digital Asset Business Licence by the Bermuda Monetary Authority.
- This licence permits KDAB to function as a regulated onchain vault manager, adhering to Bermuda’s established digital asset framework.
- The regulatory approval places Plume among other prominent digital asset firms like Circle, Coinbase, and Kraken that operate under Bermuda’s legislative environment.
- KDAB is authorized to distribute vault tokens permissionlessly to any internet-connected individual possessing a stablecoin.
- Plume’s vault structure is designed to mirror Exchange Traded Funds (ETFs), facilitating asset deposits, share issuance, yield generation, and net asset value redemptions through smart contracts.
The granted license allows KDAB to distribute vault tokens without permission to any individual with internet access and a stablecoin. This regulatory approval signifies Plume’s integration into Bermuda’s established digital asset ecosystem, positioning it alongside other key players operating under the island’s legislative framework.
Vault Design and Regulatory Framework
Plume’s vault structure is designed to emulate the operational principles of Exchange Traded Funds (ETFs). Investors can deposit assets, receive proportional shares, accrue yield, and redeem their holdings at net asset value. A key distinction of Plume’s model is its reliance on immutable smart contracts for all operations, rather than intermediaries or custodians. A curator role is defined for managing and rebalancing assets based on predefined rules embedded within the smart contracts.
Chris Yin, co-founder and CEO of Plume, stated, “The ETF was the last great structural innovation in asset management. The BMA license makes this real. It means this is not an experiment. It is a regulated financial product, supervised by a regulator that has been overseeing global financial services since 1969.”
KDAB asserts its status as the first regulated vault curator authorized to issue and distribute vault tokens. These operations are conducted under Anti-Money Laundering (AML) standards that align with those applied to stablecoins under Bermudan law and the U.S. GENIUS Act. Each vault operates as a distinct incorporated segregated account under Bermuda’s Incorporated Segregated Accounts Act 2019, providing statutory ring-fencing, separate legal personality, and bankruptcy remoteness. The collateral backing these vaults is held onchain within non-custodial smart contracts, with continuous, cryptographically verifiable proof of collateral attested by Bluprynt. Furthermore, freeze-and-seize functionalities are integrated into the vault token at the AML layer.
Potential Regulatory Precedent
Plume’s acquisition of the Class M license in Bermuda establishes a significant regulatory precedent for onchain financial products, particularly for vault managers. By operating under a jurisdiction with a developed digital asset framework like Bermuda, Plume is able to offer a product that combines the innovation of decentralized finance with the security and compliance expected of traditional financial instruments. This move could encourage other blockchain platforms to seek similar licensing in well-regulated offshore financial centers, potentially leading to a more fragmented but also more compliant global regulatory landscape for digital assets.
The license also facilitates access for U.S.-registered master funds to non-U.S. feeder structures at an onchain scale. This is achieved by pairing a BMA-supervised feeder with a globally distributable vault token. Consequently, U.S. asset managers can more effectively reach international investors without the need to establish separate fund infrastructures in each market. Teddy Pornprinya, Plume co-founder and chief business officer, commented, “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.”
Plume, which launched its mainnet in June 2025 and already had $150 million in real-world assets deployed, has developed tokenization infrastructure for various sectors including solar farms, private credit, Medicaid claims, and mineral rights. The network received a strategic investment from Apollo Global Management in April 2025. The company reported a minimal blocked transaction rate of 0.000005%, significantly lower than the approximate 1% rate observed on other public blockchains.
Specific details regarding the vault products to be offered under the new KDAB license are expected to be released in the near future.
Details can be found on the website : www.theblock.co