German Fintech 21X secures an EU license for its blockchain-based tokenization platform.
21X, a German fintech business, has received regulatory authority to operate a blockchain-based trading platform through the European Union’s DLT Pilot Regime. The German financial supervisory organization BaFin granted this license, enabling the company to provide a fully regulated system for tokenization, issuance, and trading of financial assets.
21X, which plans to begin in the first quarter of 2025 from its Frankfurt headquarters, intends to create a platform that combines blockchain technology with traditional market trust and security. The approval marks a significant milestone in the evolution of digital finance, allowing both institutional and retail investors to trade and settle tokenized securities with the same level of regulatory oversight as traditional financial markets.
Beginning in March 2023, the EU’s DLT Pilot Regime establishes a legal framework for trading and settling cryptocurrency assets classified as financial instruments under MiFID II regulations. This regime encourages the creation of new market infrastructures, such as blockchain-based trading and settlement systems, laying the groundwork for the future of on-chain capital markets.
Obtaining this license was no simple task; it took 18 months of coordination between 21X and numerous EU institutions, notably BaFin, the European Central Bank (ECB), and the European Securities and Markets Authority (ESMA). According to 21X’s CEO, Max Heinzle, the license is a game changer for capital markets, giving a platform that provides transparency, security, and regulatory compliance.
To make its vision a reality, 21X has developed strategic collaborations with numerous significant organizations in the blockchain field, including Polygon and Chainlink. By leveraging Polygon’s scalable and secure network, 21X will enable cost-effective and efficient transaction execution and settlement. Furthermore, the integration of Chainlink’s services will improve the platform’s capabilities, establishing it as the industry standard for on-chain financing.
The approval of 21X’s platform represents the expanding integration of blockchain technology into mainstream finance, with the company positioned at the vanguard of this creative transition. With projections indicating a $30 trillion trading volume by 2030, 21X is set to play a pivotal role in shaping the future of tokenized financial markets.
