In a ground breaking development poised to redefine global capital markets, 21X has become the first ever entity to receive a license to operate a blockchain-based trading and settlement system that is fully regulated in accordance with European Union (EU) law.
Fully regulated blockchain trading
Granted by BaFin, Germany’s financial supervisory authority, this license marks a milestone moment for tokenized capital markets globally.
21X, now regulated as a financial institution following the award of this license, plans to launch its exchange for tokenized financial instruments from its Frankfurt headquarters in Q1 2025.
Harnessing blockchain, 21X is set to enable change in capital markets through the trading and settlement of tokenized securities, including equity and debt securities, as well as funds – along with real-world assets (RWAs) such as real estate or artworks that qualify as eligible financial instruments.
Operating on a public, permissionless blockchain network, 21X will provide an end-to-end platform encompassing asset tokenization, issuance, distribution, listing, and trading – all within the robust regulatory framework established by the EU.
Max Heinzle, CEO of 21X, underscored the significance of this milestone: “This is more than just a license – it’s a revolutionary moment for capital markets.”
“For the first time ever institutional and retail investors can trade and settle tokenized securities on a fully regulated, blockchain-based exchange with the same level of trust, security and compliance as traditional markets.
The EU’s regulatory framework is the key to unlocking mass adoption of tokenized money and assets.
It enables self-custody; it removes clearing and corresponding settlement risks; it eliminates unnecessary complexities by reducing intermediaries – all leading to widespread efficiency gains and significantly lower costs.
With benefits such as these, 21X is not just building an exchange, we are building the market infrastructure for the future of capital markets on-chain.”
The license to 21X has been issued under the EU’s DLT Pilot Regime (DLTR), a forward-thinking regulatory framework designed to enable the testing and operation of distributed ledger technology-based trading and settlement systems (DLT TSS).
This is the result of a rigorous 18-month process between 21X, BaFin, the German Federal Bank (Deutsche Bundesbank), the European Securities and Markets Authority (ESMA) and the European Central Bank (ECB).
The post First fully regulated, EU licensed, blockchain-based trading venue appeared first on Payments Cards & Mobile.