ABN AMRO Tests Securities Trading on DLT Platform 21X Using Polygon Network

ABN AMRO Executes First Tokenized Securities Trade on 21X Platform Using Polygon Testnet

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  • Dutch banking giant ABN AMRO conducts successful tokenized securities trade on 21X platform using Polygon test network.
  • 21X becomes first EU-authorized venue combining trading and settlement under DLT Pilot Regime.
  • Platform utilizes ERC 3643 token standard and on-chain order book for atomic settlement with regulatory-compliant stablecoins.
  • ABN AMRO develops proprietary wallet solution and plans to offer custody services upon platform launch.
  • Strategic partnership formed between 21X and AllUnity stablecoin initiative, backed by major financial institutions.

ABN AMRO, one of the Netherlands‘ largest banks, has successfully executed its first tokenized securities trade on the 21X platform, marking a significant milestone in the European Union’s embrace of blockchain technology for traditional financial markets.

The proof of concept, conducted on the Polygon test network, demonstrates how traditional securities trading can be transformed using distributed ledger technology (DLT). This initiative leverages the EU’s DLT Pilot Regime, which creates a regulatory Sandbox for exploring blockchain-based financial infrastructure.

21X‘s innovative platform stands out by combining trading execution and settlement – functions traditionally separated by regulatory requirements. The platform utilizes the ERC 3643 token standard, developed by Tokeny, which ensures compliance with securities regulations while enabling atomic settlement through regulatory-approved e-money tokens.

“Following our issuance of tokenized green bonds to professional and institutional investors, and the provision of ABN AMRO digital asset custody and account capabilities, we are now adding secondary market capabilities to our scope,” stated Martijn Siebrand, Program Manager, Digital Assets, at ABN AMRO.

The platform’s architecture differs from typical cryptocurrency exchanges by implementing a central limit order book (CLOB) rather than automated market makers (AMMs). This approach better serves institutional investors trading less liquid tokenized securities.

In a parallel development, 21X has partnered with AllUnity, a stablecoin initiative backed by Deutsche Bank asset manager DWS, Flow Traders, and Galaxy Digital. This collaboration is crucial as the platform requires specific stablecoin pairs for immediate settlement post-trade matching, with trading pairs quoted against designated stablecoins rather than traditional fiat currencies.

The convergence of traditional banking, tokenized securities, and regulated stablecoins represents a significant step toward modernizing European financial markets, with ABN AMRO positioning itself at the forefront of this digital transformation.

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