Europe Sees First Exchange with Smart Contract Settlement Under BaFin Oversight

21X has launched its secondary market, enabling the trading of tokenized assets through smart contract-based matching and settlement. The platform operates under the oversight of BaFin, the Bundesbank, and ESMA.

The exchange said it is the first of its kind to use smart contracts for both order matching and settlement. This comes after the launch of its primary market in May, which introduced the first tokenized note.

Investors Trade Stablecoins, Fiat on 21X

At launch, 21X received backing from Chainlink, Circle, Polygon, and SBI Digital Markets. Other supporters include ABN Amro, Apex Group, Future Processing, Stellar, and Tradevest.

The new platform allows investors to trade with stablecoins, digital cash, and fiat currency. Transactions are settled within two seconds. In comparison, traditional systems may take days or weeks. 21X had earlier taken part in European Central Bank trials on settlement.

"21X compresses capital market workflows and can reduce participant costs by more than 50 percent, while enabling wallet- based access - whether in self-custody or via a third party," Max J. Heinzle, Founder and CEO of 21X, stated.

🚨Breaking: German fintech 21X secures EU license to tokenize TRILLIONS in #RWA!Real World Asset tokens are about to explode 🚀 pic.twitter.com/fan6SfNhIh

Over 30 Agreements Signed by 21X

According to the company, access is open to a wide range of participants. These include banks, institutional investors, corporates, and other financial institutions. The platform applies existing standards of compliance, security, and transparency from traditional markets.

You may find it interesting at FinanceMagnates.com: Everything You Need to Know About Tokenized Stocks in 2025.

In recent months, 21X signed more than 30 participant agreements. It also reported a pipeline of over 100 financial instruments from major issuers. The firm said this reflects growing demand for tokenized securities worldwide.