Dutch Bank ABN AMRO Completes On-Chain Trade of Tokenized Assets Against Stablecoins

Dutch bank ABN AMRO has conducted an onchain trade of tokenized assets against stablecoins alongside Germany-regulated 21X.

Netherlands-based bank ABN AMRO has completed an onchain trade of tokenized assets against stablecoins, together with Germany-regulated 21X.

The two firms jointly conducted a proof of concept (PoC) for the issuing of a token on the Polygon Amoy Testnet, which was then listed as a trading pair with an e-money token, according to an emailed announcement on Thursday.

"The deployment of 21X's on-chain order book smart contract enabled trading between tokenized cash and the tokenized asset in one single transaction," the firms said.

Frankfurt-based 21X, which is building a blockchain-based exchange to list and trade tokenized securities, received approval from German regulator BaFin in December.

The tokenization of traditional financial assets has emerged as a key area of interest among TradFi firms in recent years, with the technology presenting the potential to streamline processes, enhance liquidity and open up new possibilities for asset classes.

However, the regulatory landscape for tokenized assets remains underdeveloped in many jurisdictions, posing a challenge for TradFi firms seeking to fully engage with the tokenization space.

With blockchain-native companies such as 21X securing regulatory approval in major financial centers, TradFi companies can now enter partnerships with them to advance their tokenization plans with greater confidence.

"This marks an important milestone in the development of a regulated tokenized asset market, where 21X is uniquely positioned to connect TradFi and DeFi," said 21X co-founder and CEO Daniel Klesch.

"We are excited to continue working with ABN AMRO and other partners to drive innovation and efficiency in the financial markets."

Read More: What 2025 Holds for Tokenized Real World Assets