21X, which has just received the first ever license to operate an EU-regulated venue for the trading and settlement of tokenized securities, has announced details of its participation and success in the European Central Bank’s (ECB’s) experiments.
21X successfully conducts CBDC transactions
The project, in partnership with the Banque de France, as part of the ECB’s Eurosystem exploratory work on new technologies for wholesale central bank money (CeBM) settlement, focussed on leveraging distributed ledger technologies (DLTs) to advance the cross-border settlement of funds between banks.
The ECB’s Eurosystem initiative explores innovative technologies for wholesale central bank digital currency (CBDC) settlement through trials using actual CeBM and experiments in simulated environments.
Working with the Banque de France and leveraging its DL3S platform, 21X was able to successfully conduct delivery versus payment (DvP) settlement of securities in a seamless and secure manner within just 53 seconds.
Claudine Hurman, Director of the Innovation and Financial Market Infrastructures Directorate at the Banque de France, emphasized the collaborative success of the project: “Our cooperation with 21X underscores the richness and diversity of participants contributing to the Eurosystem’s exploratory work on wholesale CBDC settlement using DLTs.
Leveraging the Banque de France’s DL3S platform, we achieved atomic delivery versus payment for simulated securities transactions seamlessly settled on the 21X platform.”
“This project highlights the transformative potential of DLTs in reimagining financial market infrastructures,” continues Max Heinzle, CEO of 21X.
“Partnering with the Banque de France in the ECB’s forward-thinking Eurosystem experiments showcases our commitment to innovation and our ability to enable wholesale CBDC settlement with the Digital Euro, a core requirement of many of our banking partners and exchange members.”
21X was admitted to the trials in Wave 2 of 2024 and, through the partnership of Banque de France and the DL3S solution effectively completed the seamless DvP process using the 21X DLT exchange in October 2024.
This marks a significant milestone both for 21X and for the ECB in its exploration of new technologies for CeBM settlement, paving the way for more efficient and secure financial systems.
Alongside regulated e-money tokens under MiCAR, 21X believes that wholesale CBDCs will play a crucial role in the trading and settlement of tokenized securities in the near future.
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