The Bermuda Monetary Authority has granted a decentralized derivatives exchange license, making DerivaDEX the first DAO-controlled facility to pave the way for institutional crypto derivatives.
What did the Bermuda Monetary Authority approve?
above November 13, 2025 in Hamilton, Bermuda. Bermuda Monetary Authority given Digital asset business license to Delivadex. This is the first time that a non-custodial crypto derivatives exchange managed by the DAO has received formal regulatory approval. Additionally, this decision establishes a strategy that other jurisdictions may explore.
“The future of digital finance depends on establishing a strong foundation of compliance, regulation and customer protection in decentralized markets,” said the emeritus professor. E. David BurtJapan, Member of Parliament, Prime Minister of Bermuda. “Bermuda is committed to supporting decentralized financial institutions that share the same principles. DerivaDEX’s license demonstrates this support and demonstrates the ability of our regulator, the Bermuda Monetary Authority, to regulate advanced technology and innovative financial products in digital assets.”
Who is behind DerivaDEX and how is it managed?
DerivaDEX was founded by veterans of DRW and Consensys and is backed by Polychain Capital, Dragonfly Capital Partners, Electric Capital, and CMS Holdings. The team’s institutional focus shaped the design, which blends high-speed trading with transparent DAO-based governance. However, users always retain self-management rights.
Following high-profile exchange failures, the platform is targeting risks associated with central control. Fully secure your assets while meeting BMA monitoring requirements. That said, this model aims to improve market transparency and integrity by eliminating control by a single entity.
What is the institutional demand for cryptocurrency derivatives?
Daily cryptocurrency derivatives trading volume on major exchanges frequently 50 billion to 100 billion USD. Binance futures trading volume exceeded in July 2025 $2.5 trillionunderline scale. Additionally, decentralized venues are growing rapidly.
Hyperliquid has averaged out 6.4 billion USD in daily trading over the past three months, according to Blockworks Research’s Hyperliquid trading volume analysis. With BMA approval, DerivaDEX provides financial institutions with a licensed route to trade under recognized supervision, addressing long-standing risks and custody constraints.
How do decentralized derivatives exchanges fit into the BMA rules?
Bermuda’s digital asset business regime is recognized as a benchmark for clarity. Furthermore, the framework of the Digital Asset Business Act of 2018 is appealing to global exchanges and custodians seeking legitimacy. For example, Coinbase chose Bermuda as its first offshore jurisdiction before expanding globally.
DerivaDEX aligns non-custodial trading with authorized supervision. This allows financial institutions to maintain control of their assets while trading within a transparent governance framework. However, it also enforces the regulatory obligations and risk management that the BMA expects from supervised digital asset businesses.
What performance and products will DerivaDEX be launched with?
built on Trusted Execution Environment (TEE)DerivaDEX encrypts orders until execution to reduce MEV and information leakage. The object of exchange is less than 5ms Acknowledgments, plus 1 minute deposit and 10 minutes drawer. Additionally, we aim to achieve speeds comparable to those at centralized venues.
The platform will debut with verified institutional Bitcoin and Ethereum perpetual contracts. Future expansions could include tokenized equity derivatives and prediction markets, subject to additional approvals. However, the company is seeking access to broader jurisdictions.
Why DAO models help align risk and oversight
Unlike centralized venues that charge fees to a single operator, DerivaDEX uses DAO-based governance to meet licensed oversight requirements. Additionally, token holders, including institutional investors, will be able to manage their risk reserves, finances, and product development based on appropriate criteria.
This approach also addresses broader DAO ecosystem concerns about regulatory risk, which has made many token holders hesitant to vote. However, DerivaDEX’s sanctioned operating model aims to restore trust in on-chain governance for institutional cryptocurrency derivatives.
Comments from industry leaders
“This license removes the final barrier preventing financial institutions from participating in the decentralized derivatives market,” he said. adatage passRepresentative director of DEX Labs. “For the first time, they will be able to trade with the confidence of regulators, maintain control of their assets, and operate within a governance framework that is fully transparent and ensures market integrity.”
“Bermuda is taking a pragmatic approach to regulating the digital asset market,” Palepu added. “This license proves that decentralized exchanges can operate within an established regulatory framework while maintaining the transparency and risk management that institutions require.”
Kendary Burgess, Managing Director of the Bermuda Business Development Authority (BDA), said: “The BMA’s approval of DeliverDEX shows what is possible when thoughtful regulation and technological advancement meet, balancing progress and accountability, on which the future of finance depends. “It also highlights the power of advocacy and collaboration within Bermuda’s ecosystem, and our commitment to scaling up these milestones to enable continued innovation and sustainable growth across Bermuda.” industry”
What comes next after access and expansion?
The BMA system continues to attract companies seeking clear rules and international recognition. Additionally, DerivaDEX will initially be open to verified institutions while pursuing approval for additional products and access to multiple jurisdictions. However, that roadmap remains subject to continued review by regulators.
In summary, Bermuda’s approval creates a non-custodial market structure and a regulated path for institutional implementation. If successful, it could reset expectations about how decentralized derivatives exchanges operate at scale within a reliable legal framework.
