EU's Decentralized Ledger Technology (DLT) Pilot Regime commences primary market activities with the launch of the 21X project

EU's Decentralized Ledger Technology (DLT) Pilot Regime commences primary market activities with the launch of the 21X project

21X, a groundbreaking trading and settlement platform, has announced its first live operations, marking a significant milestone in the European Union's capital markets infrastructure. Based in Germany and founded in 2023, 21X offers a secure, efficient, and transparent marketplace for institutional investors to trade and settle tokenized financial instruments around the clock [1].

The platform's innovative approach is rooted in the European Union's Distributed Ledger Technology (DLT) Pilot Regime, which came into effect in March 2023. This regulatory framework allows certain market infrastructures to experiment with blockchain technology under supervision, fostering innovation while maintaining investor protection and market integrity [3].

As one of only three entities authorized so far under this regime, 21X stands as a pioneer in this regulatory environment. The platform aligns with the regime's principle of technological neutrality, supporting various blockchain configurations and integrating smart contracts for transaction finality and operational resilience [3].

In a statement, Max Heinzle, founder and CEO of 21X, revealed plans to list a range of tokenized assets on the platform [2]. One such asset is the US Money-Black Manta USD Short Term Yield (USMO), backed by the Ireland-registered UBS (Irl) Select Money Market Fund with a total issuance of over $10 billion across all share classes [4]. MiFiD regulated broker Black Manta Capital Partners is the issuer of USMO and performs the securitization.

21X's marketplace also boasts partnerships with entities such as ABN AMRO, APEX, Tether-backed Quantoz, and blockchain platform Dusk, further expanding its reach and capabilities [5]. Singapore's SBI Digital Markets has taken on the role of tokenization and distribution of USMO in Asia.

While the platform is currently open only to institutional and professional investors, the law allows direct access to the platform, contrasting with conventional trading venues that require brokers [6]. The DLT Pilot Regime also permits a single venue to provide both trading and settlement, with no central securities depository (CSD), although the venue performs some of the roles of a CSD [6].

In a testament to its commitment to broader fintech and blockchain initiatives within Europe, 21X participated as an ecosystem partner in the launch of the EURAU euro-denominated stablecoin under the EU's MiCAR framework [4]. As the first trading and settlement venue authorized under the EU's DLT Pilot Regime with payment using stablecoins, 21X is poised to play a crucial role in the growth of tokenized asset markets in Europe.

[1] [21X Press Release] [2] [Max Heinzle Statement] [3] [EU DLT Pilot Regime Guidelines] [4] [EURAU Stablecoin Launch Announcement] [5] [Partnership Announcements from 21X] [6] [DLT Pilot Regime Exemptions and Roles]

1. Max Heinzle, the founder and CEO of 21X, has announced plans to list tokenized assets on the platform, including the US Money-Black Manta USD Short Term Yield (USMO), a stablecoin asset backed by the Ireland-registered UBS (Irl) Select Money Market Fund.
2. As a pioneer within the European Union's Distributed Ledger Technology (DLT) Pilot Regime, 21X aligns with the regime's principle of technological neutrality, supporting various blockchain configurations and integrating smart contracts for transaction finality and operational resilience.
3. Singapore's SBI Digital Markets has taken on the role of tokenization and distribution of USMO in Asia, demonstrating 21X's expanding reach and capabilities.
4. In the European Union, 21X stands as the first trading and settlement venue authorized under the DLT Pilot Regime with payment using stablecoins, positioning itself to play a crucial role in the growth of tokenized asset markets.

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