SBI Digital Markets (SBIDM), a subsidiary of Japan’s largest online financial services group, SBI Holdings, announced that it has partnered with Germany-based 21X, a provider of market infrastructure based on distributed ledger technology (DLT), to list tokenized securities.
SBIDM will list tokenized securities on 21X’s DLT marketplace, which has a trading and settlement system on the public blockchain without permits. 21X said it is in the process of applying for a license to operate a DLT trading and settlement system (DLT TSS) under the European Union’s DLT system (DLTR).
Once approved, 21X is expected to become a fully regulated DLT market operator in Europe, supervised by the European Securities and Markets Authority (ESMA).
SBIDM’s role in cooperation with 21x
SBIDM has announced that it will act as listing agent and service provider for tokenized assets and will handle custody of tokenized securities on 21X. The focus will be on issuing and trading exchange-traded debt instruments (ETNs) and ETFs on 21X’s DLT platform.
SBIDM has a strong presence in the Asia-Pacific region, with investors from Singapore, Japan and Thailand saying the company will gain access to European markets with this new venture.
“Our strategic partnership with SBIDM marks a significant point in the development of 21X and the globalization of capital markets using blockchain technology,” said Max Heinzle, founder and CEO of 21X.
He added that SBIDM, with its strong presence in Asia, will use 21X as a gateway to Europe, using the first fully regulated DLT exchange for tokenized securities.
Tokenization as a global trend
The growing trend of tokenization of traditional assets has caught the attention of traditional financial institutions. According to a recent report by Moody’s, a leading investment risk assessment firm, the value of tokenized funds has risen from $100 million in early 2023 to about $800 million today, driven by the growing tokenization of U.S. Treasury bonds.
