- SBI Digital Markets and 21X have teamed up to list tokenized securities on DLT platforms.
- The partnership will focus on tokenized ETNs and ETFs, with plans to extend into Asia and Europe.
SBI Digital Markets (SBIDM), a subsidiary of Japan’s SBI Holdings, has teamed with 21X, a German provider of distributed ledger technology (DLT), to list tokenized securities on 21X’s platform provided regulatory license is obtained. 21X is waiting for final approval from BaFin to launch its EU DLT Pilot Regime, which will enable the smooth trading and settlement of tokenized assets on a public permissionless blockchain.
SBIDM and 21X’s collaboration will initially concentrate on listing exchange-traded notes (ETNs) and funds (ETFs) from Singapore, with intentions to expand to EU-issued securities for investors in Asia-Pacific (APAC) markets such as Singapore, Thailand, and Japan. SBIDM will serve as the listing agent, tokenization service provider, and global custodian for these digital securities.
Innovative Tokenization for the Global Market
The DLT Pilot Regime, which will begin operations soon, will enable integrated trading and post-trade settlement, eliminating the need for traditional clearing systems and facilitating direct retail investor access. By combining tokenization and fractionalization, the platform provides customers for a wider spectrum of investors.
Winston Quek, CEO of SBIDM, highlighted the importance of this agreement, stating that “This collaboration will allow SBIDM to use 21X as the gateway to Europe for trading and settlement of digital securities, leveraging the first fully regulated exchange in Europe for tokenized assets.”
SBI has long intended to connect tokenized markets around the world, and as part of that schedule, it formed SBI Digital Asset Holdings (SBI DAH) in Singapore. This vision includes joint ventures such as AsiaNext with SIX Digital Exchange (SDX) and the debut of START, a tokenized securities exchange operated by the Osaka Digital Exchange.
While blockchain is essentially global, regulatory differences offer hurdles, making collaborations like this critical for closing custody and settlement gaps between regions. Earlier this week, 21X announced a partnership with fund administrator Apex to list tokenized funds on its platform. SBI also just teamed up with Oasys to improve the gaming industry.
Aside from that, the collaboration between SBIDM and 21X represents a significant milestone in SBI’s worldwide tokenization journey, improving cross-border access to digital securities.
