21X: Pioneering EU-Regulated Secondary Market Infrastructure for Tokenized Digital Assets

21X stands as a groundbreaking EU-regulated secondary market trading and settlement infrastructure designed specifically for tokenized digital assets. By enabling peer-to-peer trading without reliance on third-party intermediaries, 21X revolutionizes the way tokenized assets are exchanged, offering a streamlined, secure, and highly efficient environment for market participants.

The platform supports a comprehensive range of services, including multilateral secondary market trading as well as asset tokenization, issuance, and distribution. Its versatile design accommodates brokers, financial institutions, investors, banks, asset managers, exchanges, and market makers, providing them with the tools necessary to thrive in the evolving digital asset ecosystem.

Regulatory Compliance

Operating under the robust EU Distributed Ledger Technology (DLT) Pilot Regime, 21X is licensed and supervised by leading regulatory bodies such as BaFin and ESMA. The platform complies fully with MiFID II, MiCAR, eWpG, and KryptoFAV regulations, establishing itself as the first institution to receive the prestigious DLT Trading and Settlement System (DLT TSS) license. This regulatory framework ensures that a broad spectrum of assets — including stocks, bonds, ETFs, tokenized funds, and carbon credits — can be securely traded on the 21X secondary market.

Advantages of using 21X

Listing assets on 21X unlocks significant liquidity advantages. Through strategic partnerships with multiple liquidity providers and market makers, the platform ensures continuous liquidity for listed tokenized assets. Smart contract–enabled matching and settlement deliver rapid trade execution while eliminating counterparty risk.

Atomic settlements guarantee that transactions are instantaneous and final, reducing costs by removing intermediary fees. The P2P nature of 21X allows for self-custody of assets, further mitigating risks associated with third parties.

All trading activities on 21X operate under the comprehensive supervision of the EU DLT regime, with stringent KYC and AML compliance checks performed prior to wallet whitelisting to uphold security and regulatory integrity.

At the core of 21X’s technology is a Central Limit Order Book (CLOB) model implemented via smart contracts. This system is supported by off-chain components that ensure compliance with regulatory standards while leveraging the transparency and immutability of blockchain technology.

The DLT TSS order book smart contracts are deployed on public permissionless blockchains, enabling the seamless trading of tokenized financial instruments with unprecedented speed and security.

Onboarding and Trading Process

The onboarding process with 21X begins when participants request access to a sandbox environment and whitelist their wallets. This sandbox provides financial instruments, whitelisted test users with dedicated wallets, a trading front-end, and API and SDK access, facilitating smooth integration.

Participants then integrate 21X’s APIs into their customer platforms or IT systems, utilizing scripting languages such as Python or TypeScript to interact with the APIs and smart contracts. A REST API client, like Postman, is used for testing and debugging, and participants must hold a Polygon PoS chain wallet funded with POL tokens to proceed.

Upon integration, trading orders are executed via smart contract order books, with atomic settlement mechanisms ensuring that matching and settlement occur automatically and within moments.

Conclusion

21X’s ecosystem includes a variety of participant types, ranging from issuers and listing sponsors like UBS, BlackRock, and VanEck, to EMT providers, market makers, trade participants, and strategic partners.

In bridging traditional finance with blockchain innovation, 21X offers a secure, liquid, and compliant marketplace for tokenized assets. By being the first institution licensed under the EU DLT TSS framework, it sets a new standard for the future of digital asset trading and settlement in Europe and beyond.

Source: 21X

About Crypto Diva

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As the Sales and Marketing Manager of coinIX & COINVEST, I’ve got the privilege of being in close contact with Blockchain investment firms, as well as the innovative web3 projects which are creating the foundations the future financial world. I love to make the impossible possible and i’m willing to go the extra mile for that. Be my companion in my DeFi journey and I’ll show you everything.

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