The DLT exchange 21X has partnered with fund administrator Apex Group to list the tokenized securities of Apex’s clients. The exchange is awaiting its DLT Pilot Regime go ahead from the European Securities Market Authority (ESMA). Once approved, 21X will be both a DLT trading and settlement system (DLT TSS). This news means the approval process is quite advanced.
It also acts as a rallying cry for asset managers, institutions, brokers and distributors who might want to list securities on 21X’s market.
Apex administers more than $3 trillion in funds for its clients and is prolific in its blockchain activities, starting with the acquisition of FundAdminChain in early 2022. Additionally, it has invested in various solutions, including tokenization platform Tokeny and Inveniam, which provides on-chain valuation data for tokenized assets. Tokeny is also one of 21X’s partners.
21X said it will be the “European exchange of choice” for listing Apex client tokenized securities.
“In the dynamic landscape of fund management, staying ahead of the curve is crucial for success and asset tokenisation holds tremendous potential for transforming the fund administration and management landscape,” said Peter Hughes, founder and CEO of Apex Group. “Our partnership with 21X fits perfectly with our strategy of expanding our tokenized asset capabilities.”
The DLT Pilot Regime
It’s been a long wait for the first DLT Pilot Regime approval. Yesterday marked 18 months since the legislation came into force, with no institutions approved so far. Amongst the first batch of four applicants, 21X is the only that applied to be both an exchange and settlement system. Conventional regulations require a separation between exchanges and central securities depositories (CSDs), which the DLT Pilot Regime relaxes, although the approval process involves stringent requirements relating to both activities. Additionally, the DLT Pilot Regime allows exchanges to deal directly with retail clients, rather than restricting interactions to brokers and other institutions.
“This announcement is a major milestone on our path to launching the first fully regulated DLT-based exchange and settlement system,” said Max J. Heinzle, founder and CEO of 21X. “As a major digital asset service provider, Apex Group’s dedication to list tokenized securities on 21X is also a historic step for capital markets globally.”
Earlier this year Mr Heinzle shared details about 21X’s plans in a Ledger Insights interview.
