Think of an ETF, but living entirely onchain, wrapped in Bermuda’s regulatory framework, and backed by cryptographic proof of reserves. That’s what Plume just built.

On May 20, 2026, Plume’s subsidiary Kimber Digital Assets Bermuda ISAC Ltd. (KDAB) secured a Class M Digital Asset Business Licence from the Bermuda Monetary Authority (BMA), making it the world’s first regulated onchain vault manager. The licence allows KDAB to create and distribute vault tokens representing tokenized institutional assets, all while meeting the kind of compliance standards that have traditionally kept big money away from decentralized finance.

How the vaults actually work

KDAB’s vaults function similarly to ETFs, using non-custodial smart contracts to manage user deposits. Users deposit assets, receive proportional vault tokens in return, accrue yield over time, and can redeem those tokens at net asset value.

Every vault uses cryptographically verifiable collateral proof, meaning anyone can audit what’s actually backing the tokens. The platform reports a blocked transaction rate of just 0.000005% for illicit activity.

The asset classes covered aren’t limited to crypto-native products. KDAB plans to tokenize private credit, real estate, commodities, and Treasury-backed products. The first BMA-regulated vaults are expected to launch imminently.

Why Bermuda, and why it matters

Plume joins the ranks of Circle and Coinbase, both of which operate under the BMA’s licensing framework. KDAB’s compliance framework draws inspiration from two sources: Bermuda’s existing stablecoin regulatory model and the US GENIUS Act. The licence subjects KDAB to strict prudential oversight, including robust asset-liability management practices, comprehensive cybersecurity requirements, and detailed wind-down planning.

The vault tokens also come with embedded freeze-and-seize capabilities, meaning regulators can intervene if tokens are associated with sanctioned entities or illicit activity. Plume also maintains SEC transfer-agent registration in the US.

The ecosystem behind the vaults

Plume’s Nest protocol supports institutional real-world assets and has distributed over $350 million in asset value to date. Apollo Global Management and Galaxy Digital are among the backers. Plume’s ecosystem includes relationships with firms like WisdomTree and Hamilton Lane.

The continuous transaction monitoring built into the vaults monitors flows in real time, rather than relying on periodic audits or attestations.

What this means for investors

For retail investors, the vault token model offers access to institutional-grade assets with transparent pricing and redemption at NAV across asset classes like private credit and real estate that have historically been locked behind high minimums and accredited investor requirements.

The freeze-and-seize functionality means vault tokens don’t carry the same censorship resistance as native crypto assets. Regulators can intervene when tokens are associated with sanctioned entities or illicit activity — a trade-off every participant in this category will need to understand.