Frankfurt-based fintech 21X has emerged as a key player in the realm of tokenized capital markets, leveraging blockchain technology to redefine how assets are traded and settled.

With strategic partnerships and a regulatory license, 21X is paving the way for a secure, efficient, and accessible digital asset ecosystem.

Recent milestones—the collaboration with Stellar and the launch of the world’s first fully regulated blockchain-based exchange for tokenized securities and stablecoins—mark a pivotal moment in the evolution of capital markets.

In a strategic alliance announced this past year, 21X partnered with the Stellar network in order to integrate its high-speed, low-cost blockchain infrastructure into 21X’s regulated trading platform.

Stellar’s blockchain, known for its efficiency in cross-border transactions and asset tokenization, complements 21X’s vision of creating a compliant marketplace for tokenized financial instruments.

This partnership enables 21X to leverage Stellar’s network to facilitate the issuance, trading, and settlement of tokenized assets, including stocks, bonds, funds, and real-world assets (RWAs) like real estate and artworks.

The collaboration with Stellar enhances 21X’s ability to offer atomic trading and settlement, where transactions are executed and finalized in real time, eliminating the need for traditional intermediaries like central securities depositories.

This integration ensures low-latency, cost-effective transactions while adhering to the stringent regulatory standards of the European Union’s Distributed Ledger Technology (DLT) Pilot Regime.

By combining Stellar’s blockchain capabilities with 21X’s regulatory framework, the partnership creates an environment for institutional and retail investors.

This month, 21X made history by launching the world’s first fully regulated blockchain-based exchange for tokenized securities and stablecoins, a milestone celebrated as the “Spotify moment” for capital markets.

Operating under the oversight of Germany’s BaFin, the Deutsche Bundesbank, and the European Securities and Markets Authority (ESMA), 21X’s Distributed Ledger Technology Trading and Settlement System (DLT TSS) introduces a new global benchmark for financial markets.

The platform enables investors to trade tokenized assets using stablecoins, digital cash, or fiat currency, with order matching and settlement completed in just two seconds—compared to days or weeks in traditional systems.

This launch follows 21X’s debut of its primary market in May 2025, which saw the listing of the US Money-Black Manta USD Short Term Yield (USMO), a tokenized note backed by a $10 billion UBS money market fund.

The secondary market launch builds on this foundation, creating a liquid, open ecosystem that bridges decentralized and traditional finance.

With over 30 exchange participant agreements and more than 100 financial instruments in the pipeline, 21X is capitalizing on the demand for tokenized securities, projected to reach $30 trillion in trading volume by 2030.

21X’s platform, built on a public permissionless blockchain like Polygon and supported by partners like Chainlink, Circle, and SBI Digital Markets, offers more efficiency.

By using smart contract-based matching and settlement, 21X eliminates counterparty and credit risks, reduces participant costs by over 50%, and democratizes access to a range of investors, including corporates and institutions.

This inclusivity breaks down the “walled gardens” of traditional exchanges, enabling new use cases and business models.

The EU’s DLT Pilot Regime, under which 21X secured its license in December 2024, provides a regulatory framework that ensures investor protection and financial stability while promoting blockchain tech advancements.

Max Heinzle, CEO of 21X, emphasized the significance:

“This is more than just a license—it’s a revolutionary moment for capital markets. For the first time, investors can trade and settle tokenized securities on a fully regulated, blockchain-based exchange with the same trust and compliance as traditional markets.”

The collaboration with Stellar and the launch of 21X’s exchange signal somewhat of a paradigm shift in finance, where blockchain technology unlocks liquidity, transparency, and efficiency.

With plans to expand to 24/7 trading and a network of partners, including ABN Amro, Apex Group, and Zühlke, 21X is expected to play a role in the global transition to tokenized capital markets.