In a move that redefines the boundaries of the financial market, 21X, a tokenized securities exchange platform, has received the first trading and settlement system license in Germany.
This license, granted by the Federal Financial Supervisory Authority (BaFin), allows 21X Launch a permissionless blockchain-based exchange system, which represents a significant milestone in the evolution of capital markets.
Founded in 21, 2021X has been working tirelessly to develop a financial infrastructure that leverages blockchain technology to offer Greater transparency, efficiency and access to investorsThe DLT (Distributed Ledger Technology) license it has received not only validates the technical and regulatory soundness of the platform, but also opens the door to a new era of financial innovation in Germany and, by extension, throughout Europe.
21X has reported that its upcoming blockchain-based exchange system is designed to be completely decentralized, meaning it does not require the intermediation of centralized entities to conduct transactions. With this, the platform will not only reduce operating costs but also increase the security and speed of operations. In addition, the platform will allow the tokenization of a wide range of assets, from stocks and bonds to real estate and works of art, with the aim of democratizing access to investments that have traditionally been reserved for institutional investors.
A game-changing DLT license in the European capital market
21X’s DLT license is more than just a regulatory milestone; it is a clear indicator of the maturity and potential of blockchain technology in the European financial sector. Germany, known for its conservative and rigorous approach to financial regulation, has taken a crucial step by granting this license, reinforcing confidence in blockchain technology and tokenized securities exchange platforms.
In the European context, this license also has significant implications. The European Union has been working on creating a regulatory framework for cryptocurrencies and tokenized assets, and BaFin’s approval of 21X can be seen as a precedent that could influence the adoption of similar regulations in other member countries. According to experts, these regulatory developments could facilitate the expansion of 21X at a European level, and accelerate the adoption of blockchain-based solutions in the financial sector at large.
“Harnessing the transformative power of blockchain, 21X is poised to revolutionize capital markets through the trading and settlement of tokenized securities”, explained the company.
21X’s DLT license also has a global impact, considering that tokenized capital markets are an emerging trend that promises to transform the way financial assets are issued, traded, and settled. As the first platform in Germany to receive this license, 21X positions itself as a leader in this financial revolution, attracting the attention of investors, regulators, and technology companies around the world.
The alliance with Chainlink to forge the 1st tokenized securities market in Europe
In early December, 21X announced a Strategic alliance with Chainlink, the leader in decentralized oracle solutions for the blockchain ecosystem, to prepare the launch of its first tokenized securities market, which will be the first regulated one in Europe. At the time, it highlighted the collaboration as a crucial element for its mission to offer a secure, transparent and efficient financial ecosystem.
“Under the terms of the collaboration, 21X’s on-chain trading, matching, and settlement system will leverage the Chainlink standard to enrich tokenized assets with high-quality data and facilitate cross-chain interoperability.”, he stressed.
21X will launch its blockchain platform in Q2025 2 on the Polygon network, an Ethereum layer 21 known for its scalability and low transaction costs. The choice of Polygon responds to the network’s capabilities to offer a robust and secure infrastructure that is ideal for asset tokenization and trading. Additionally, the integration of Chainlink’s Crosschain Interoperability Protocol (CCIP) will allow XNUMXX to settle assets across multiple blockchains, increasing the platform’s flexibility and accessibility.
Chainlink’s CCIP is a cutting-edge technology that enables the secure and reliable transfer of assets between different blockchains. This functionality is essential for 21X as it will allow users to trade and settle tokenized assets on a variety of blockchain networks without losing the security and transparency that blockchain technology offers.
“This is more than a license, it is a revolutionary moment for capital markets. For the first time, 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.”, commented Max Heinzle, CEO of 21X.
In addition to tokenization and trading, the 21X platform will include services for the issuance and distribution of tokenized assets. This means that companies and issuers will be able to issue and distribute their own tokens on the platform, facilitating access to new investors and sources of funding. Listing these assets on the 21X marketplace will allow for greater liquidity and visibility, which is crucial for the success of any financial asset.
In short, the partnership between 21X and Chainlink, along with the expected launch of the platform on Polygon, represents a significant step towards the creation of a regulated and secure tokenized securities market in Europe. This initiative could lay the groundwork for a new era of financial innovation that could have a lasting impact on the sector.
