21X – which recently received the first ever license to operate an EU-regulated venue for the trading and settlement of tokenized securities – and ABN AMRO – the leading Dutch bank – have completed a joint partner initiative in preparation for the launch of 21X’s digital asset exchange.
With the successful completion of a joint proof of concept (PoC), ABN AMRO said it has demonstrated membership readiness on 21X’s on-chain market infrastructure to facilitate tokenization, custody and trading functionalities for tokenized securities.
The joint PoC provides a practical demonstration of the end-to-end value chain for tokenized assets. Building on ABN AMRO’s tokenization capabilities, the bank issued an ERC-3643 token on the Polygon Amoy Testnet which was listed by 21X as a trading pair with an ERC-20 based E-Money Token.
Atomic matching of buy and sell orders
This is a major step forward for the tokenized assets market and could open new frontiers eventually for private investors, allowing them to access a wide range of assets at a price point not normally available.. The testing of the infrastructure by large banks is doubly important, as this will pave the way to eventual connectivity for forward-thinking brokerage platforms.
- Sol Strategies wins big on Solana staking bet
- Copper opens in Liechtenstein to provide digital assets custody service
- 21X gets BaFin blessing to launch blockchain trading venue in 2025
After successful listing on the Testnet, the matching of buy and sell orders was made atomically and settled on the blockchain within a few seconds. The deployment of 21X’s on-chain order book smart contract enabled trading between tokenized cash and the tokenized asset in one single transaction.
Utilizing ABN AMRO’s institutional wallet solution, it becomes the first bank to showcase membership readiness as a future participant on 21X.
Max Heinzle, CEO of 21X, said: “As part of our launch preparations we are now in the process of onboarding institutional participants. The PoC with ABN AMRO is a great example of raising awareness of the efficiency gains and cost savings that can be realized with our on-chain trading and settlement system. Digital asset pioneers, such as ABN AMRO, are crucial to fostering innovation in capital markets to fulfil our mission to unlock the full potential of distributed technology.”
Following the issuance of tokenized green bonds to professional and institutional investors, and the provision of ABN AMRO digital asset custody and account capabilities, the bank is now adding secondary market capabilities to our scope through our cooperation with the leading European DLT trading and settlement system.”
[Following this successful project, the collaboration will be expanded to the live system for the upcoming launch of 21X, facilitating access to assets listed on 21X for ABN AMRO’s client base. This partnership marks a significant step by both companies to work together to offer a more efficient and inclusive capital market ecosystem.
Unlocking new opportunities for the token market
“By leveraging DLT and fostering collaboration, 21X and ABN AMRO aim to unlock new opportunities for investors, issuers, and intermediaries across the globe,” Heinzle said.
In December 2024, 21X secured a license to operate its groundbreaking distributed ledger technology (DLT) trading and settlement system (DLT TSS) trading venue, a milestone that places the company as a leader in the transition to digital finance. The company looks very well positioned to enable smart contract-based issuance, trading and settlement of tokenized stocks, bonds and funds.