Securitize's EU License Bridges U.S.-EU Blockchain Finance Divide

Securitize has secured a landmark regulatory approval to operate a blockchain-based trading and settlement system across the European Union, marking a pivotal step in the integration of digital assets into traditional finance. The Spanish National Securities Market Commission (CNMV) granted the authorization under the EU's DLT Pilot Regime, a regulatory sandbox designed to test distributed ledger technology in financial infrastructure. This license enables Securitize to function as both an Investment Firm and a Trading and Settlement System (TSS), making it the only entity globally licensed to run regulated digital securities infrastructure in both the EU and the United States. The approval follows four years of collaboration with regulators including the European Securities and Markets Authority (ESMA), the European Central Bank, and the Bank of Spain, underscoring the growing acceptance of blockchain in institutional finance according to industry reports.

The TSS will operate on the Avalanche blockchain, chosen for its high-speed transaction finality and institutional-grade scalability. Avalanche's architecture supports sub-second settlements, critical for compliant financial operations, and allows customizable blockchains tailored to regulatory requirements. This infrastructure will facilitate the seamless trading and settlement of tokenized securities, including equities, debt, and funds, across all 27 EU member states. By bridging the U.S. and EU markets, Securitize aims to streamline cross-border transactions, reducing latency and counterparty risks while enhancing transparency. The firm's U.S. operations, already encompassing a registered broker-dealer and alternative trading system, now align with its European infrastructure, creating a unified platform for global capital markets.

Securitize's approval extends its passported Investment Firm license, obtained in December 2024, to jurisdictions including Germany, France, Italy, and Luxembourg. This allows the company to execute trades, hold custody, and manage tokenized assets under a single regulatory framework. The ERIR (Electronic Registration and Identification Record) status in Spain further solidifies its role as a digital transfer agent for tokenized securities, enabling end-to-end asset lifecycle management. The firm plans to launch its first EU-based tokenized assets in early 2026, including equity and debt instruments, signaling a broader shift toward on-chain finance according to market analysts.

The partnership with Avalanche has also driven market optimism. AVAX surged past $15 following the announcement, with analysts noting its potential to break key resistance levels as institutional adoption grows. This momentum is supported by Avalanche's existing institutional use cases, including tokenized funds from Apollo and J.P. Morgan, which validate its capability to handle large-scale financial infrastructure. Securitize's deployment on Avalanche aligns with its vision to tokenize $4 trillion in real-world assets, leveraging the blockchain's EVM compatibility and customizable subnets to meet regulatory and operational demands.

The approval represents a regulatory milestone for blockchain adoption, bridging fragmented capital markets and fostering innovation within supervised frameworks. Securitize's leadership in this space is further reinforced by its $1.25 billion SPAC merger, set to list on Nasdaq as SECZ, and its role in managing BlackRock's BUIDL fund, which now oversees $4 billion in on-chain assets according to industry sources. As the first firm to operate a regulated TSS in both the U.S. and EU, Securitize's model could set a precedent for cross-border digital securities platforms, accelerating the tokenization of traditional assets and enhancing liquidity in global markets.