21X in coordination with Polygon Labs is pleased to announce 21X is building an ESMA regulated market infrastructure for tokenized securities “on the Polygon proof-of-stake (PoS) blockchain.”
21X and Polygon Labs are collaborating in order “to advance asset tokenization and trading within the Polygon ecosystem.”
Polygon PoS stands out “as one of the most widely adopted protocols globally, boasting an extensive network that supports tens of thousands of decentralized applications (dApps).”
This success has reportedly “gathered significant attention from prominent institutional entities worldwide.”
Key factors driving the appeal of the Polygon PoS protocol “to traditional finance, major brands, and emerging Web3 startups include its cost-effective transaction fees, rapid transaction processing speeds, and robust security measures.”
Tokenized financial instruments, “such as stocks, bonds, or funds, bring the next wave of institutional adoption towards blockchain with profound implications for the financial industry.”
Asset tokenization enables fractional ownership “of high-value assets, promotesaccessibility to financial instruments, facilitates the tradability of illiquidassets, and automates processes such as reporting, interest payments, andcorporate actions.”
Until now, the full potential of tokenized securities has “been limited by regulatory uncertainty.”
However, with the introduction of the EU DLT Pilot Regime (DLTR), Europe has unveiled a harmonized regulatory framework “that empowers the transformation of capital markets through disintermediation and decentralization.” Asset Tokenization “under DLTR disrupts the status quo and now finds its way to the Polygon PoS blockchain.”
21.finance will launch 21X, “the first ESMA regulated blockchain-powered market infrastructure for financial instruments built on the Polygon PoS blockchain, to bring real financial use cases to the Polygon ecosystem.”
Thereby, access to financial assets can “further be democratized and illiquid assets become tradeable on a public blockchain infrastructure.”
Currently, this initiative is “undergoing regulatory assessment with national and international supervisors, facilitated by 21X, headquartered in Frankfurt, Germany.”
The to-be regulated market infrastructure will “enable smartcontract-based trading and settlement of tokenized stocks, bonds, and fund instruments.”
The orderbooks of 21X operating “on the Polygon PoS protocol unlock the full potential of blockchain technology by promoting disintermediation and decentralization in capital markets.
As noted in the update, 21.finance is a FinTech “building digital asset platforms for asset managers and financial institutions.”
With 21X, the company is currently “in the process of becoming a licensed DLT Trading and Settlement system under the EU DLT Pilot Regime (DLTR).”
This regulated market infrastructure will “enable tradability and liquidity for tokenized securities across the globe in an efficient and secure manner utilizing blockchain technology.”