In December Germany’s 21X landed the first DLT Pilot Regime license to operate a combined regulated trading and settlement venue (DLT TSS) on a permissionless blockchain, Polygon. It expects to go live soon. Today it announced a collaboration with Dusk, a privacy focused permissionless blockchain that targets the issuance of tokenized real world assets (RWA). Initially Dusk is onboarding as a trade participant.
A key goal of the partnership is for stablecoin treasury management, which involves the stablecoin issuer buying and selling tokenized money market funds for the stablecoin’s reserves. Both Dusk and 21X are based in the EU, with its strong regulatory perimeter.
Dusk also has a partnership with Dutch SME stock exchange NPEX, which had planned to participate in the DLT Pilot Regime. Plus, Dusk has a collaboration with EU stablecoin issuer Quantoz.
It has both a Layer 1 blockchain and a Layer2 EVM (Ethereum compatible) chain which natively supports confidential smart contracts. 21X plans to integrate with the EVM chain, expanding the range of blockchains it will support.
“Their commitment to tokenized asset trading on our platform reinforces our shared vision for a compliant digital asset ecosystem. As we build the infrastructure for the next generation of capital markets, interoperability with appropriate networks is crucial,” said Max Heinzle, CEO at 21X.
So far 21X is the only DLT Pilot Regime DLT TSS, and only one of two authorized entities, the other being CSD Prague. Last week the French and Italian regulators AMF and CONSOB proposed some changes to the DLT Pilot Regime to attract more participants.
