The Solana-based NFT app, Backpack, announced it will launch a regulated crypto exchange after securing a VASP license from the Dubai Virtual Asset Regulatory Authority (VARA).
On Tuesday, Backpack, a Solana-based NFT (non-fungible token) wallet app, announced it will roll out a regulated cryptocurrency exchange. The exchange, called Backpack Exchange, received a Virtual Asset Service Provider (VASP) license for Exchange Services from Dubai’s Virtual Asset Regulatory Authority (VARA). VARA granted Backpack the license after a rigorous evaluation process. The VARA license only applies to Backpack Exchange, not other services and features on the Backpack App.
Backpack Exchange Available in Early 2024
Backpack founder and CEO Armani Ferrante announced the news via X (formerly Twitter).
Sign up for the waitlist https://t.co/44tITBLJSA ? https://t.co/Wy5zQQLLum pic.twitter.com/aTE9FqmyJ3
— Backpack ? (@xNFT_Backpack) October 31, 2023
The company behind the Backpack app is Coral. Coral is also behind the Solana-based xNFT (executable NFT) standard for NFT-based apps and experiences and the MadLads profile picture collection on Solana. According to reports, Coral said Backpack Exchange is not open to the public yet, but it has been in development for five months. Coral reportedly further explained the exchange is built around technologies such as zero-knowledge proof of reserves and multi-party computation (MPC).
The exchange will be available as a private beta for existing Backpack and MadLads community members in November. Backpack Exchange will only offer spot trading for the time being and will launch in the first quarter of 2024. Reports additionally state that developers will add derivative and margin trading to the exchange after its launch.
Dedicated to Transparency and Compliance
Ferrante commented on the launch of the exchange by saying:
“It's time to put an end to the days of opaque crypto exchanges representing everything our industry stands against. It shouldn't be normal to use an exchange with a single point of failure, without proof of reserves, or without auditability.
A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that. Using cryptographic techniques like zk-proofs, MPC, and state machine replication, Backpack Exchange hopes to raise the bar for transparency and compliance to demonstrate the best this technology has to offer. Don't trust, verify.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
