Max Heinzle, 21X’s CEO, reacts to ESMA’s letter outlining the progress of its groundbreaking EU DLT Pilot Regime

Yesterday marked a big day for EU capital market infrastructure regulation and blockchain-enabled capital markets. Verena Ross, chair of the European Securities Market Authority (ESMA) published a letter outlining the progress of its ground-breaking EU DLT Pilot Regime – https://www.esma.europa.eu/sites/default/files/2024-04/ESMA75-117376770-460_DLT_Pilot_Regime_-_Letter_to_EU_Institutions.pdf

As Max J. Heinzle, 21X – European DLT Exchange CEO explains, this isn’t just a bureaucratic update – it’s a true leap forward as it details the challenges faced in securing the adoption of distributed ledger technology (DLT) by European financial institutions – along with the steps needed to make it happen. Significantly, the letter’s content proves that ESMA is pushing hard to increase the regime’s attractiveness.

“A year ago, the EU committed to leading the world in creating a fully regulated, efficient, and secure trading ecosystem for financial instruments directly on the blockchain. Let that sink in! Talk about disruption!

And 21X is proud to be leading this revolution as potentially the first company in the EU to obtain a DLT TSS license. We were among the first companies to apply for a DLTR license when the pilot regime launched in March 2023 and have been working with BaFin, ESMA and Bundesbank to take the steps needed to soon secure a license to offer our unique infrastructure for trading and settling of tokenized assets.

The ESMA letter highlights key areas for further development, demonstrating that feedback from industry partners such as 21X is being actively taken into account by ESMA. We are pleased to see ESMA’s positive intentions and even more excited to be at the forefront of this regulatory and technological transformation.

And here’s the beauty of this pilot program: By further enhancing its regulations to address crucial issues like cash settlement, self-hosted wallets, and the scope of admitted assets, ESMA is paving the way for the optimal environment in which to embrace DLT. As a result, I expect Europe to become the uncontested leader in the widespread adoption of tokenized instruments for both primary and secondary markets.

And the best part? ESMA’s proposed extension of the pilot program to six years will undoubtedly provide 21X, our partners and the wider industry with the necessary time to refine offerings and meet the growing demand for DLT solutions.

The road to complete blockchain integration will require dedication, but under ESMA’s leadership – supported by national jurisdictions – Europe is leading the way.

21X is thrilled to be part of this journey as we work together to usher in a new era of secure, transparent, and accessible tokenized asset trading for both institutions and retail investors. This isn’t just an evolution – it’s a revolution led by European visionaries!

And we should all be excited about the future of digital finance and the benefits it will bring!”

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