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[Frankfurt/ New York,19.10.2023] – 21X (www.21x.eu), 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 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 remarkable success has 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 hasbeen 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.
Colin Butler, Global Head of Institutional Capital at Polygon Labs, expressed confidence in the transformative potential of 21X, stating,
"21X is one of the most promising projects currently building on Polygon. Fully on-chain exchanges like 21X have a truly disruptive potential for nearly every sector in traditional finance. 21X’s approach, working directly with regulators to builda fully compliant securities trading venue, changes the game in terms of what’spossible. When you combine this with thePolygon protocols’ scalability and security, it’s clear the future holdscountless innovative applications that will change the way we think abouttokenized assets on a decentralized blockchain. "
With the Polygon PoS protocol being apreferred choice for institutional asset tokenization globally, 21X leverages aleading blockchain infrastructure for tokenized securities. The Polygon PoS-integrated trading venue will foster significant cost reductions in trading and settlement and can further act as a launchpad for primary issuances or even a future utility token by 21X. The strategic collaboration between Polygon and 21X also encompasses collaboration with various financial institutions and service providers within the Polygon ecosystem. This includes players in the fields of blockchain analytics, e-money institutes, market makers, and oracle services.
Max J. Heinzle, CEO, and founder of21.finance, highlighted the collaborative effort, saying,
"With the technical expertise of the Polygon Labs team and the vibrant Polygon ecosystem in asset tokenization, we will enable tradability and liquidity for tokenized securities and foster institutional adoption of the Polygon protocols."
Polygon Labs develops Ethereum scaling solutions for Polygon protocols. Polygon Labs engages with other ecosystem developers to help make available scalable, affordable, secure and sustainable blockchain infrastructure for Web3.
Polygon Labs has initially developed a growing suite of protocols for developers to gain easy access to major scaling solutions, including layer 2s (zero-knowledge rollups),sidechains, app-specific chains and data availability protocols. Scaling solutions that Polygon Labs initially developed have seen widespread adoption with tens of thousands of decentralized apps, unique addresses exceeding 261 million, over 1.4 million smart contracts created and 2.7 billion total transactions processed since inception. The existing Polygon network is home for some of the biggest Web3 projects, such as Aave, Uniswap, QiDao and OpenSea, and well-known enterprises, including Robinhood, Stripe and Adobe. Polygon Labs is carbon neutral with the goal of leading Web3 in becoming carbon negative.
If you're an Ethereum Developer, you're already a Polygon developer! Leverage Polygon’s fast and secure txns for dApps you develop, get started here.
21.finance is an award-winning 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 fortokenized securities across the globe in an efficient and secure manner utilizing blockchain technology.
21.finance DLT-TSS AG
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