Key Takeaways:
- Regulatory Milestone: 21X secures BaFin approval to launch a blockchain-based platform under the EU’s DLT Pilot Regime, enabling tokenized trading and settlement from Q1 2025.
- Strategic Partnerships: Collaborations with Polygon, Apex Group, and Chainlink enhance scalability, security, and on-chain finance standards for the platform.
- Broader Adoption: 21X joins other European firms leveraging the DLT Pilot Regime, signaling growth in regulated blockchain-based market infrastructures.
German fintech company 21X has secured regulatory approval from BaFin, Germany’s financial regulator, to launch a blockchain-based trading and settlement platform under the EU’s Distributed Ledger Technology (DLT) Pilot Regime.
The platform, set to debut in Q1 2025, will facilitate the tokenization, issuance, trading, and settlement of tokenized financial instruments, marking a significant advancement in digital finance.
@tradeon21x today announced that we have signed a strategic partnership with @chainlink, the standard for onchain finance, as we prepare to launch our EU-regulated trading & settlement system. pic.twitter.com/N3ARx9WVrl
— 21X – European DLT Exchange (@tradeon21x) December 2, 2024
The EU’s DLT Pilot Regime, effective since March 2023, provides a legal framework for the trading and settlement of digital assets classified as financial instruments under MiFID II.
21X collaborated with BaFin, the German Federal Bank, the European Securities and Markets Authority (ESMA), and the European Central Bank (ECB) for 18 months to secure this license.
To build its platform, 21X partnered with Polygon, leveraging its Ethereum-compatible network for scalability, security, and cost-efficiency.
Other collaborators include Apex Group, SBI Digital Markets, and Chainlink, whose technologies enhance on-chain financial services.
21X is among several companies applying for licenses under the DLT Pilot Regime, reflecting growing interest in blockchain-based infrastructures across Europe.
The company’s platform aims to provide institutional and retail investors with secure, regulated access to tokenized securities, heralding a new era in European capital markets.
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