Frankfurt-based 21X has declared the dawn of a “new era” in capital markets with the launch of its fully regulated exchange for tokenized securities and stablecoins, an announcement made this Monday.
Having commenced operations on September 8th, the platform operates under the watchful eye of BaFin (Germany’s financial regulatory authority), the Bundesbank (Germany’s central bank), and the European Securities and Markets Authority. It boasts atomic, smart contract-driven capabilities for trade matching and settlement.
Trade settlements are now finalized in a mere two seconds, a stark contrast to conventional methods that can take days or even weeks to complete.
The exchange, already boasting a participant base exceeding 30 members, has garnered significant support from prominent global industry players, including Chainlink, Circle, Polygon, and SBI Digital Markets.
Additional supporters include ABN Amro, Apex Group, Stellar, and Tradevest. Furthermore, the exchange anticipates listing over 100 financial instruments from leading issuers in the near future.
Investors can engage in trading activities utilizing stablecoins, digital cash, or traditional fiat currencies, building upon 21X’s successful primary market launch in May, which featured the inaugural listing of a tokenized note.
The exchange’s operating hours are currently weekdays from 8:00 AM to 5:00 PM Central European Time (CET), with plans underway to transition to 24/7 trading availability.
Max J. Heinzle, the founder and CEO of 21X, likened the launch to the “Spotify moment for capital markets,” emphasizing that, “For the very first time, a security trade is settled atomically, peer-to-peer, in real time, eliminating the need for central securities depositories or clearing services.”
Heinzle further stated that the platform streamlines processes, slashes costs by more than 50%, and broadens accessibility by welcoming corporations, institutions, and banks alongside traditional financial entities.