Catenaa, Thursday, December 05, 2024 – German fintech firm 21X has become one of the first companies to gain regulatory approval to operate a blockchain-based trading and settlement platform under the European Union’s DLT Pilot Regime.
The milestone was confirmed Tuesday following an announcement from Germany’s financial watchdog, BaFin.
The license enables 21X to establish a fully regulated system for tokenization, issuance, and trading of digital securities from its Frankfurt base. The company plans to launch its operations in early 2025.
The DLT Pilot Regime, implemented in March 2023, is designed to support the trading of crypto assets deemed financial instruments under the Markets in Financial Instruments Directive (MiFID II).
The framework allows innovative infrastructures, such as blockchain trading and settlement systems, to operate under specific regulatory guidance.
In developing its platform, 21X has partnered with Polygon, a prominent blockchain network, and Chainlink, a Web3 service provider.
Polygon’s scalability and security were cited as crucial for on-chain transactions, while Chainlink’s integration will enhance financial operations on the platform.
The approval reflects a broader trend of blockchain adoption in European financial systems. Other firms, including CSD Prague in the Czech Republic, have also secured permissions under the DLT Pilot Regime, signaling a shift toward regulated blockchain innovations.
