21X – a distributed ledger technology (DLT)-based market infrastructure for tokenized securities based in Germany, has secured what is calls “a ground-breaking strategic partnership” with Singapore-based SBI Digital Markets.

SBIDM is a subsidiary of Japan’s largest online financial services group, SBI Holdings.

21X, a Germany-based market infrastructure for tokenized securities utilizing distributed ledger technology (DLT), has announced a crucial collaboration with SBI Digital Markets (SBIDM), a Singapore-based company and a subsidiary of SBI Holdings, the largest online financial services group in Japan.

Under the agreement, SBIDM will list tokenized securities on 21X's DLT market, which operates a matching, trading, and settlement system on a public permission-less blockchain.

21X is set to become the first fully regulated DLT market operator under the EU DLTR, making this collaboration a historic event as it marks the first time that tokenized securities will be able to be traded on an exchange under the regulations of the European Securities and Markets Authority (ESMA).

Within the strategic partnership, SBIDM will serve as a listing agent and provide services for asset tokenization and custody of tokenized securities admitted to primary and/or secondary markets on 21X. Together, SBIDIM and 21X plan to issue, distribute, and trade a range of tokenized securities on 21X, initially focusing on exchange-traded notes (ETNs) and exchange-traded funds (ETFs).

This partnership is expected to open distribution channels for SBIDM investors from APAC regions, including Singapore, Thailand, and Japan, into Europe and vice versa.

Announcing the agreement, Max Heinzle, founder and CEO of 21X, stated: “For over a decade SBI has been both an innovator and early mover in the burgeoning digital asset space. Our strategic partnership with SBIDM marks a significant point in the development of 21X and the globalization of blockchain-leveraging capital markets. With our license to operate imminent, this collaboration will allow SBIDM, which holds an outstanding market position in Asia, to use 21X as the gateway to Europe for trading and settlement of digital securities, taking advantage of the first and only fully regulated exchange in Europe for tokenized securities, at launch.”

SBI Digital Markets' agreement with 21X is seen as a substantial step forward for the tokenized securities industry. Moreover, 21X's fully regulated DLT market aligns fully with SBIDM's goal to build a global exchange and distribution network for tokenized securities.

“We have been working with our ecosystem partners over the last months to establish a pipeline of tokenized assets to list on 21X where SBIDM will act as a global custodian and service provider,” said Winston Quek, CEO of SBI Digital Markets. “This collaboration is a testament to our shared vision for the future of digital securities.”

21X's DLT exchange offers several advantages over traditional exchanges, including the elimination of clearing, atomic matching and settlement, increased accessibility, the possibility for self-custody, and cost-effectiveness through a high level of automation.