The world’s first tokenized securities and stablecoin exchange powered by blockchain has been introduced by 21X, which introduces a radical change in the infrastructure of capital markets in the world, creating a groundbreaking two-second settlement time smart contract-based matching and settlement that is a significant technological milestone relative to conventional systems, which can take days or weeks to complete.
Introduction of revolutionary blockchain trading platforms
FF News has reported about the launch of the exchange of tokenized cash and securities by 21X, a new era in world capital markets, according to the proclamation. Being the first exchange worldwide to support matching and settlement of smart contracts, 21X has set a new global standard in the capital market, supervised by BaFin, Bundesbank, and ESMA.
Having the support of industry participants at the time of launch, such as Chainlink, Circle, Polygon, and SBI Digital Markets, 21X has created a more efficient and easy-to-access financial market infrastructure that is aided by blockchain technology. Other of the early supporters are ABN Amro, Apex Group, Future Processing, Stellar, and Tradevest.
The announcement comes after the primary market of 21X was successfully opened in May, in which the first tokenized note was listed. The introduction of the secondary market today is a rational continuation of the establishment of a working and liquid trading platform on an open ecosystem.
Smart contract technology helps to settle instantly
Investors are now able to buy and sell tokenized assets on 21X using stablecoins, other types of digital cash, and fiat money after the company has been involved in trials with the European Central Bank. Order matching and settlement occur in as few as two seconds, as opposed to conventional days or even weeks to settle.
In contrast to traditional and other digital asset exchanges, 21X democratises access to any form of participants, including corporate clients and institutional investors, not just banks and financial institutions. This opens up completely novel applications and business cases in trading tokenized securities.
On the technology page of the company, it describes itself as the first licensed trading and settlement system for tokenized financial instruments based on distributed ledger technology under the EU DLT Regime. Being a controlled market framework and exchange, 21X will make it possible to issue and trade financial instruments based on DLTs.
CEO points to radical market influence
The introduction of 21X heralds the Spotify moment of capital markets in which on-chain is the new online, according to Max J. Heinzle, founder and CEO of 21X. First-ever security trade is atomic, peer-to-peer, real-time, and does not need a central securities depositary or clearing services. 21X streamlines capital market operations and has the potential to cut costs to participants by over 50 per cent with wallet-based access, either in self-custody or through a third party.
Expansion strategies are in place all over the world
21X has also entered into more than 30 exchange participant agreements in recent months, and there are an excess of 100 additional financial instruments of world-leading issuers in the pipeline. Running 21X on weekdays 8 am to 5 pm CET, it will shortly be offered as a 24/7 trading platform to support the demands of a global industry.
The market infrastructure of the platform is based on the public permissionless blockchains, where all the participants post their orders directly by means of smart contracts, and all the transactions are documented on a distributed registry, which promotes data integrity and immutability.
The blockchain exchange that 21X is developing is a paradigm shift in the infrastructure of capital markets that integrates regulatory compliance with innovative distributed ledger technology. By allowing atomic settlement and saving more than half of the costs compared to the traditional security level, the platform becomes the foundation for the future of tokenized securities trading.