ABN AMRO and 21X Collaborate on Tokenized Asset Trading
Dutch bank ABN AMRO has recently embarked on an innovative venture by executing an on-chain trade of tokenized assets against stablecoins in partnership with the Germany-regulated firm 21X. This collaboration resulted in a successful proof of concept (PoC) for the issuance of a token on the Polygon Amoy Testnet, which was subsequently listed as a trading pair alongside an e-money token, as detailed in an announcement shared via email on Thursday.
The integration of 21X’s on-chain order book smart contract facilitated seamless trading between tokenized cash and the corresponding tokenized asset within a single transaction, showcasing the potential of blockchain technology in modern finance. Based in Frankfurt, 21X is developing a cutting-edge blockchain-based exchange designed to list and trade tokenized securities. The firm gained regulatory approval from the German financial watchdog BaFin in December, marking a significant milestone in its journey.
Tokenization, which involves representing real-world assets such as stocks or bonds as tokens on a blockchain, has garnered increasing interest from traditional financial (TradFi) institutions in recent years. The successful acquisition of regulatory approval by blockchain-native entities like 21X in key financial hubs is paving the way for TradFi firms to forge partnerships with them, thereby advancing their own tokenization strategies with enhanced confidence and security.
