
The German Federal Financial Supervisory Authority, BaFin, has officially granted 21X a license to operate a distributed ledger technology-based trading system for tokenized securities. This approval marks a significant milestone for the European RWA market, as 21X becomes the first blockchain-based exchange to receive such authorization under the EU's DLT Pilot Regime. By integrating trading, clearing, and settlement into a single automated process, the platform aims to reduce the operational inefficiencies typically associated with traditional financial market infrastructures. The exchange will utilize the Polygon blockchain to facilitate the issuance and secondary market trading of tokenized assets. This regulatory clearance provides a compliant framework for institutional participants to engage with digital securities within the European Union. The development signals a broader shift toward the institutionalization of tokenized assets, moving beyond experimental sandboxes into fully regulated production environments. As 21X prepares to launch, its ability to bridge traditional finance with blockchain technology will likely serve as a benchmark for future digital asset exchanges operating under MiCA and DLT Pilot regulations.
21X is a financial market infrastructure provider focused on the tokenization of securities using distributed ledger technology. The company aims to streamline the lifecycle of financial instruments by automating clearing and settlement processes on-chain. It operates within the regulatory boundaries established by the European Union to foster innovation in digital finance.