21X Secures EU Approval for Blockchain Trading Platform Under DLT Regime
German fintech 21X has reached a major milestone with regulatory approval under the EU’s DLT Pilot Regime.
BaFin has granted the Frankfurt-based company a license to operate a fully regulated blockchain trading platform. 21X is one of the first to shape the future of blockchain finance in Europe.
The platform will allow tokenization, issuance, listing and trading of financial instruments on blockchain. Launching in Q1 2025 21X will give institutional and retail investors the ability to trade tokenized securities with the same level of security and compliance as traditional markets.
What Is the EU’s DLT Pilot Regime?
Introduced in March 2023 the DLT Pilot Regime provides a regulatory framework for trading crypto assets that are financial instruments under MiFID II. This framework allows companies like 21X to operate multilateral trading facilities and settlement systems under strict regulations.
The approval process for 21X took 18 months and involved BaFin, the German Federal Bank, ESMA and the ECB. According to 21X’s CEO Max Heinzle this is a game changer for capital markets, bridging traditional finance with blockchain.
Key highlights of the DLT Pilot Regime:
Facilitates blockchain-based trading of financial instruments.
Supports the development of regulated multilateral trading facilities.
Encourages integration of blockchain in traditional financial markets.
21X Partners with Blockchain Leaders
To build its blockchain trading platform 21X has partnered with industry leaders Polygon and Chainlink. Polygon’s blockchain infrastructure is scalable and secure and will enable fast and cost efficient transactions. Chainlink’s Web3 services will add onchain finance capabilities to the platform.
This is a sign that 21X is serious about using blockchain for trading in an efficient, secure and regulated way. With CSD Prague in the Czech Republic also getting approved under the DLT Pilot Regime the ball is rolling for blockchain in European markets.
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