- The 21X secured license under the EU’s DLT Pilot Regime.
- The market is supposed to surpass $30 trillion in trading volume by 2030.
21X, a German fintech firm, has secured regulatory approval from BaFin, Germany’s financial supervisory authority, to operate a blockchain-based tokenization platform. This approval marks the first time an entity has been granted a license for a fully regulated trading and settlement system under the EU’s DLT Pilot Regime (DLTR).
Also, the platform is set to launch in early 2025 from 21X’s Frankfurt headquarters. It aims to provide services for the tokenization, issuance, and trading of financial instruments. It combines the efficiency of blockchain technology with potent regulatory oversight.
Besides, the approval of 21X’s platform is transformative as the market is projected to surpass $30 trillion in trading volume by 2030. It is driven by the efficiency of blockchain technology and increased institutional participation. 21X founder and CEO, Max Heinzle, stated:
“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.”
Furthermore, he stated that the EU’s regulatory framework is necessary for the adoption of tokenized assets. It supports self-custody, reduces settlement risks, and cuts intermediaries; it also enhances efficiency. 21X’s mission is to establish more than an exchange; it aims to shape the future infrastructure for on-chain capital markets.
A Collaborative Effort
The development of 21X’s platform has been backed by strategic partnerships with SBI Digital Markets, Polygon, and Apex Group. This ecosystem leverages Polygon’s scalable and secure public blockchain network to enable on-chain trade settlements and executions.
Moreover, the stringent eighteen-month approval process involved collaboration between 21X, BaFin, Deutsche Bundesbank, the European Securities and Markets Authority (ESMA), and the European Central Bank (ECB). In addition, this approach has comprehensively ensured the platform meets EU compliance and the regulatory standards.
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