Today marks the formal launch of Mauve, a decentralised exchange (DEX) for trading legal and physical goods, according to a press statement from the business.
According to the company, the DEX is one of the first non-custodial exchanges to receive Cayman Islands Monetary Authority approval as a virtual asset service provider (VASP). It aims at asset issuers who require compliance guarantees and controls, enabling the existence of secondary markets for on-chain, or tokenized, real-world assets like fixed income securities.
DEXs are blockchain-based applications that facilitate user-to-user trade of digital assets. Users trade in a decentralised environment without giving up custody of their assets, as they would in a centralised exchange, making it impossible for anyone to misappropriate these digital assets. In direct response to the effects of the demise of the centralised cryptocurrency exchange FTX, Mauve was created.
Mauve is a division of Violet, a platform for decentralised finance (DeFi) compliance and identification infrastructure supported by the venture capital division of cryptocurrency exchange Coinbase (COIN) and Brevan Howard’s digital assets company. DeFi is an umbrella term for financial operations including lending, trading, and other transactions that take place on a blockchain without the help of conventional middlemen.
Markus Maier, one of the co-founders of Mauve, stated, “We believe the future of finance is on-chain.” “The foundation is our programmable compliance infrastructure, Violet, which we purpose-built for the needs of RWA issuers and institutional buyers,” he continued, referring to real-world assets.