21X has obtained the first-ever EU license for a blockchain trading platform and settlement system.
21X has achieved a major milestone by becoming the first company to obtain a license for a fully regulated blockchain-based trading and settlement system in the EU. This license, granted by Germany’s BaFin, marks a new era for tokenized capital markets. The company, which is now classified as a financial institution, aims to start operations of its exchange for tokenized financial instruments in early 2025 based in Frankfurt.
It is believed that this move will revolutionize capital markets through the trading and settlement of tokenized securities with blockchain technology. This includes shares, debentures, securities, and tangible items such as property and paintings. The exchange will operate on a public and permissionless blockchain. Moreover, it provides the capabilities of asset tokenization, asset issuance, asset distribution, and trading within the EU regulatory framework.
The CEO of 21X Max Heinzle identified this as a big deal, noting that it was a revolutionary moment for the industry. He explained how the EU’s regulatory approach encourages confidence and safety when compared to the centralized approach that demands third parties to hold customers’ funds. Heinzle said that this would mean a lot of costs would be cut and efficiency in market operations enhanced.
21X Ready to Transform Markets with New EU Blockchain License
The license came after 18 months of engagement between the 21X and the EU regulatory authorities, which include Deutsche Bundesbank, BaFin, ESMA, as well as the ECB. This was under the EU DLT Pilot Regime. Furthermore, this aims at supporting trading and settlement systems based on DLT.
The tokenized securities market could possibly go over $30 trillion in the year 2030 because of blockchain technology and rising institutional acceptance. The CTO of 21X, Marc Hegen, stated that the DLTR framework would allow native tokenized listings and atomic settlement, which he regards as a “game-changer.”
21X has collaborated with organizations such as Polygon, Apex Group, and SBI Digital Markets to create an environment that enables effortless engagement. Using Polygon Labs, the company has the opportunity to implement on-chain transactions based on blockchain scalability and security.
Before the launch of 2025, 21X aims to partner with global financial institutions to settle various financial securities in its marketplace. Heinzle also appreciated the stakeholders and praised the EU and German regulators for this. This initiative positions 21X as a leader in the future of blockchain-based finance.
