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21X AG, a Frankfurt-based fintech and subsidiary to 21.finance AG, plans to operate a EU-wide digital platform in Germany: a trading exchange for tokenized securities. KPMG's digital assets team is supporting the company with the necessary license application for the so-called DLT Trading and Settlement System.

Blockchains in the focus of the capital market: EU DLT pilot regime creates legal certainty

The legal framework of the DLT Pilot Regime, which came into force in the EU in March 2023, enables such license applications. DLT stands for distributed ledger technologies - including blockchains. European legislators have created legal certainty for the traditional capital market due to the innovative potential of DLT.

"Revolution" in European capital market law

"With the DLT Pilot Regime, traditional financial instruments that are subject to the EU Markets in Financial Instruments Directive (MiFID) can now be issued, traded and settled using a blockchain," explains Jens Siebert, KPMG Partner, Financial Services. "This is a revolution for European capital market law."

"Pioneering work" by, with and for fintech companies

In the video, Siebert provides insights into the joint project together with Max Heinzle, CEO and founder of 21.finance AG and 21X AG. Among other things, Siebert and his colleagues provide support in the operational application process and in dialog with regulators. Heinzle refers to the cooperation as "pioneering work" in view of the lack of a guiding framework.

  • In the video, you can also find out to what extent market participants are now entering uncharted territory due to the regulatory structures, how advanced the licensing process already is - and which relevant stakeholders 21.finance is still in talks with before the platform is launched.