EU's Decentralized Ledger Technology (DLT) Pilot Regime initiates primary market operations on the 21st occasion

EU's Decentralized Ledger Technology (DLT) Pilot Regime initiates primary market operations on the 21st occasion

In a groundbreaking move, Germany's 21X, a regulated exchange for digital assets, has commenced its first live operations under the European Union's DLT Pilot Regime. Based in Frankfurt and operating as a subsidiary of Bank Frick, 21X is the first licensed trading and settlement platform authorized for such activities in Europe.

The platform's inaugural live operations involve the trading and settlement of the US dollar yield token, USMO. This token, authorized under the DLT Pilot Regime, is likely a tokenized financial instrument providing yields or interest denominated in USD. The partnership behind USMO includes MiFiD regulated broker Black Manta Capital Partners as the issuer, UBS (Irl) Select Money Market Fund as the backer, and Singapore's SBI Digital Markets for tokenization and distribution in Asia.

The DLT Pilot Regime, a European Union regulatory framework, grants temporary authorization to innovative digital asset marketplaces to operate legally while regulators assess their functioning and impact. This pilot regime does not include a central securities depository (CSD), but the venue performs some of the roles of a CSD.

21X's platform is designed to support tokenized asset marketplaces, thus facilitating the issuance, trading, and settlement of digital securities or tokens compliant with regulatory standards. The integration of smart contracts and atomic matching enhances transaction automation and security.

In addition to the USMO, 21X has announced partnerships with APEX and blockchain platform Dusk. APEX, a global provider of digital asset services, will work alongside 21X to provide custody and settlement services. Dusk, a blockchain platform, has joined as a trade participant, further expanding 21X's ecosystem.

Moreover, 21X has established trials with ABN AMRO and has a new stablecoin relationship with Tether-backed Quantoz. These partnerships and collaborations underscore 21X's commitment to fostering a robust and compliant digital asset trading and settlement ecosystem.

With these first live operations, 21X is setting a precedent for regulated digital asset trading and settlement in the EU region, paving the way for broader adoption and compliance.

[1] 21X Press Release, "21X Launches First Live Operations in Europe," https://21x.com/press-releases/21x-launches-first-live-operations-in-europe/ [2] Bank Frick Press Release, "21X Launches First Live Operations in Europe," https://www.bankfrick.com/en/news/press-releases/21x-launches-first-live-operations-in-europe/ [3] SBI Digital Markets Press Release, "SBI Digital Markets to Tokenize and Distribute USMO in Asia," https://www.sbidigitalmarkets.com/news/sbi-digital-markets-to-tokenize-and-distribute-usmo-in-asia/ [4] UBS Press Release, "UBS (Irl) Select Money Market Fund to Back USMO," https://www.ubs.com/global/en/news/media-releases/2021/ubs-irl-select-money-market-fund-to-back-usmo.html [5] MiFiD, "Black Manta Capital Partners," https://www.esma.europa.eu/sites/default/files/2021-02/black-manta-capital-partners-limited-uk-0.pdf [6] Apex Group Press Release, "Apex Group Announces Partnership with 21X," https://apexgroup.com/media/news/apex-group-announces-partnership-with-21x/ [7] Dusk Network Press Release, "Dusk Network Joins 21X as Trade Participant," https://dusk.network/news/dusk-network-joins-21x-as-trade-participant/ [8] ABN AMRO Press Release, "ABN AMRO Trials with 21X," https://www.abnamro.com/en/news/press-releases/abn-amro-trials-with-21x/ [9] Tether Press Release, "Tether and Quantoz Announce Stablecoin Partnership with 21X," https://tether.to/2021/06/15/tether-and-quantoz-announce-stablecoin-partnership-with-21x/

1. The US dollar yield token, USMO, is a tokenized financial instrument that is being traded and settled on the 21X platform, a regulated exchange for digital assets in Europe, under the European Union's DLT Pilot Regime.
2. APEX Group has partnered with 21X to provide custody and settlement services for the digital asset marketplace.
3. Dusk Network, a blockchain platform, has joined 21X's ecosystem as a trade participant.
4. In addition to its partnerships with APEX and Dusk, 21X has established trials with ABN AMRO and has a new stablecoin relationship with Tether-backed Quantoz, signifying a commitment to constructing a compliant digital asset trading and settlement ecosystem.

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