Frequently asked questions

Reduced Risk of Fraud: ESMA regulations require robust security measures to protect user assets from theft or hacking.

Enhanced Transparency: Regulated exchanges are subject to regular audits, ensuring clear and transparent operations.

Know Your Customer (KYC) and Anti-Money Laundering (AML) Checks: These measures help prevent illegal activities and protect consumers from bad actors.

Dispute resolution mechanisms: ESMA regulations typically require fair and efficient dispute resolution processes for customer concerns.

Investor Compensation Schemes: Some regulations may include compensation schemes for consumers in case of exchange failure.

Clearer Rules and Standards: Regulations provide a framework for consumer protection and fair market practices.

Fractional Ownership: Tokenization allows dividing assets (like stocks or real estate) into smaller units. This makes them more accessible to a wider range of investors with less capital.

Increased Liquidity: Tokenized assets can potentially trade 24/7, improving liquidity compared to traditional markets with limited trading hours.

Faster Settlement times: Blockchain technology can facilitate faster settlement times compared to traditional systems, potentially leading to quicker access to funds after a trade.

Programmable Features: Smart contracts for tokenized assets mean they can be programmed with specific features, such as automatic dividend payouts or voting rights. This can streamline processes and enhance efficiency.

New asset classes: Tokenization can unlock new asset classes for investment, like fractional ownership of artwork or rare collectibles.

Tokenized assets are real-world assets that have been converted into a digital representation on a blockchain. Examples of tokenized assets include:

• Security Tokens: Represent ownership in a company similar to traditional stocks.
• Real Estate Tokens: Represent ownership in a property or a portion of a property.
• Art Tokens: Represent ownership in a piece of artwork or a fraction of it.
• Commodity Tokens: Represent ownership in a physical commodity like gold or oil.

Security Tokens: This is the core focus of 21X. Security tokens represent ownership or rights in real-world assets that have been tokenized on a blockchain.

This could include:

• Equity Tokens: These represent fractional ownership in a company, similar to traditional stocks.
• Debt Tokens: These represent a debt obligation, similar to bonds.
• Asset-Backed Tokens: These are backed by real-world assets like real estate, art, or commodities.
• Investment Funds: 21X might offer trading in tokenized versions of investment funds, such as:
• Exchange-Traded Funds (ETFs): These track a basket of underlying assets and could be tokenized for more efficient trading.
• Private Equity Funds: These could be tokenized to provide greater accessibility for qualified investors

Reduced market manipulation: Regulatory oversight helps to prevent market manipulation and unfair trading practices.

Increased liquidity: Consumer confidence in a regulated environment can attract more investors and improve market liquidity.

Standardized practices: Regulations ensure consistency and transparency across the trading platform.

Institutional Investors: 21X caters to institutional investors seeking a secure and regulated platform for trading security tokens and digital assets. This includes hedge funds, asset managers, investment banks, and other accredited institutions.

Qualified Retail Investors: Subject to regulatory approval, 21X may also offer access to qualified retail investors who meet specific criteria for experience and risk tolerance.

DLT Infrastructure: 21X leverages Distributed Ledger Technology (DLT) to provide a secure and transparent platform for trading and settlement. Our public permissionless blockchain technology fosters trust and immutability of transactions.

Matching Engine: We employ a high-performance matching engine designed for fast order execution and low latency. This ensures a smooth and efficient trading experience for our users.

Security Features: Security is paramount at 21X. We implement robust security protocols, including multi-factor authentication, secure key storage, and regular penetration testing.

Phased Approach: 21X is committed to a responsible rollout. We will launch with a limited set of features and assets, gradually expanding based on regulatory approvals and market demand.

Regulatory Compliance: Obtaining a DLT Trading and Settlement System (DLT TSS) license under the EU DLT Pilot Regime is a crucial step. We are actively working with regulators to ensure compliance with all applicable laws and regulations.

Exchange Fees: Similar to traditional exchanges, 21X will generate revenue through trading fees charged to users. These fees will be competitive and transparent.

Listing Fees: Digital asset projects seeking to list their tokens on 21X may incur listing fees. The structure of these fees will be clearly communicated.

Security and Regulation: 21X prioritizes security and operates under the EU DLT Regime, fostering trust and confidence for institutions and investors.

Efficiency and Speed: Our DLT infrastructure enables atomic settlement and fast trade execution, streamlining the trading process.

Transparency and Fairness: All transactions on 21X are recorded on the immutable blockchain, ensuring transparency and fairness for all participants.

Innovation and Growth: 21X is at the forefront of technological advancements, constantly evolving to meet the needs of the digital asset market.

Building Trust: We believe in building trust with our users, regulators, and partners. Transparency, compliance, and a commitment to security are core aspects of our strategy.

Fostering Innovation: 21X is dedicated to driving innovation in the digital asset space. We will continuously explore new technologies and functionalities to enhance our platform.

Global Reach: While initially focused on Europe, 21X has ambitions to expand its reach globally, subject to regulatory approvals in different jurisdictions.

Liquidity: Building liquidity is crucial for any digital asset exchange. 21X will employ various strategies, including partnerships with market makers and institutional investors, to attract users and create a vibrant trading environment.

Compliance Landscape: The regulatory environment for digital assets is constantly evolving. 21X will remain adaptable and compliant with all relevant regulations.