ABN AMRO, 21X Pioneer Onchain Trade of Tokenized Assets

ABN AMRO and 21X Collaborate on Onchain Trade of Tokenized Assets Against Stablecoins

Dutch banking giant ABN AMRO has partnered with Germany-regulated 21X to conduct an onchain trade of tokenized assets against stablecoins. The collaboration marks a significant step in the integration of blockchain technology and traditional finance (TradFi).

The joint proof of concept (PoC) involved the issuance of a token on the Polygon Amoy Testnet, which was subsequently listed as a trading pair with an e-money token. The deployment of 21X's on-chain order book smart contract enabled seamless trading between tokenized cash and the tokenized asset in a single transaction.

21X, a Frankfurt-based company building a blockchain-based exchange for tokenized securities, received approval from German regulator BaFin in December. This regulatory endorsement has bolstered confidence among TradFi firms in exploring tokenization opportunities.

Tokenization, the process of representing real-world assets such as stocks or bonds as tokens on a blockchain, has gained traction among TradFi firms in recent years. By leveraging blockchain technology, these firms aim to enhance liquidity, accessibility, and transparency in financial markets.

The collaboration between ABN AMRO and 21X demonstrates the potential for TradFi firms to partner with blockchain-native companies to advance their tokenization plans. As regulatory frameworks continue to evolve, we can expect to see more such collaborations in the future, driving innovation and growth in the digital asset ecosystem.