Mauve Launches Decentralized Exchange (DEX) with Compliance Focus
This DEX distinguishes itself as one of the initial non-custodial exchanges to secure approval as a virtual asset service provider (VASP) by the Cayman Islands Monetary Authority. Mauve’s primary objective is to cater to asset issuers seeking robust compliance assurances and controls, thereby facilitating the existence of secondary markets for on-chain, or tokenized, real-world assets, including fixed income securities.
DEXs, or decentralized exchanges, operate as blockchain-based applications that facilitate the exchange of digital assets among users. In this decentralized ecosystem, users can execute trades without having to relinquish custody of their assets, which contrasts with centralized exchanges. This design ensures that no one can misappropriate digital assets. Notably, Mauve emerged in response to the fallout from the collapse of the centralized crypto exchange, FTX.
Mauve operates as a subsidiary of Violet, a compliance and identity infrastructure platform designed for decentralized finance (DeFi). Violet enjoys support from the digital assets division of the prominent hedge fund entity, Brevan Howard, and the venture capital arm of cryptocurrency exchange giant, Coinbase (COIN). DeFi encompasses various financial activities, including lending and trading, conducted on a blockchain, effectively eliminating the need for traditional intermediaries.
Markus Maier, a co-founder of Mauve, expressed confidence in the future of on-chain finance, stating, “We believe the future of finance is on-chain.” He emphasized the significance of Violet as their foundation, describing it as a programmable compliance infrastructure custom-tailored to meet the requirements of real-world asset issuers and institutional buyers.
In summary, Mauve’s launch as a DEX with a compliance-oriented approach, coupled with its non-custodial model, positions it as a noteworthy player in the evolving landscape of blockchain-based financial services.