Introduction
SBI Digital Markets (SBIDM), a subsidiary of Japan’s SBI Holdings, is collaborating with the German firm 21X. This partnership aims to facilitate the listing of tokenized securities.
Tokenized Securities on DLT Market
SBIDM plans to list tokenized securities on 21X’s DLT market. This market features a trading and settlement system based on a public blockchain.
Currently, 21X is applying for a license to operate a DLT trading and settlement system (DLT TSS) under the European Union’s DLT regulatory framework (DLTR). Once approved, 21X will become a fully regulated DLT market operator in Europe. The European Securities and Markets Authority (ESMA) will oversee its operations.
SBIDM to Handle Custody of Tokenized Securities
As part of the agreement, SBIDM will serve as the listing agent and service provider for asset tokenization. It will also manage the custody of tokenized securities on 21X. The focus will be on issuing and trading exchange-traded notes (ETNs) and exchange-traded funds (ETFs) through the DLT platform.
SBIDM has a strong presence in the Asia-Pacific region. Investors from Singapore, Japan, and Thailand contribute to its robust network. This partnership allows SBIDM to access European markets effectively.
“Our strategic partnership with SBIDM marks a significant point in the development of 21X,” said Max Heinzle, the founder and CEO. He noted that SBIDM will use 21X as a gateway to Europe, benefiting from the first fully regulated DLT exchange for tokenized securities.
The Growing Tokenization Trend
The trend of tokenizing traditional assets is gaining traction among financial institutions. A recent report by Moody’s reveals that the value of tokenized funds has surged from $100 million at the beginning of 2023 to approximately $800 million today. This increase largely stems from the rising tokenization of U.S. treasuries.
The post Crypto Unit of Japan’s SBI to List Tokenized Securities on German Exchange 21X appeared first on Cryptonews.
