In a significant move that could bridge the gap between traditional finance and the digital asset ecosystem, Amina, a Swiss-regulated crypto bank, has joined the EU-regulated 21X blockchain platform as its first fully regulated bank participant. This development marks a pivotal step toward the integration of blockchain-based securities into mainstream capital markets.
Announced on Monday, Amina’s participation in 21X is part of a broader strategy to support the issuance and trading of tokenized securities. By partnering with Tokeny, a Luxembourg-based technology provider for tokenized financial assets, Amina aims to address one of the most significant barriers to institutional adoption: interoperability.
Interoperability and Market Scale
According to a report by Baker McKenzie’s European Financial Services practice, interoperability remains a critical obstacle for the widespread adoption of tokenized assets among financial institutions. Yves Mauchle, a Zurich-based partner at Baker McKenzie, emphasized that achieving scale in the tokenization market will require numerous market players to transact on common or interconnected platforms.
21X and the EU DLT Pilot Regime
21X received its infrastructure permit under the EU’s DLT (Distributed Ledger Technology) pilot regime in December 2024. This regulatory sandbox allows the platform to operate a regulated market for blockchain-based securities, facilitating the testing and evaluation of how DLT can integrate with existing market infrastructure. The DLT framework, introduced in 2023, is designed to help regulators understand the potential of blockchain technology in financial markets.
Challenges and Future Prospects
Despite early enthusiasm, the EU’s DLT pilot regime has faced criticism from industry participants. Some warn that the current limitations could hinder the scalability of European onchain markets, making it difficult for them to compete with other jurisdictions. However, the involvement of regulated banks like Amina could be a game-changer, potentially accelerating the adoption of tokenized securities and fostering a more robust digital asset ecosystem.
Global Trends in Tokenization
The push for tokenization is not unique to the EU. In the United States, institutions such as BNY Mellon, Nasdaq, and S&P Global have backed the expansion of the Canton Network, a blockchain infrastructure for tokenized assets. Similarly, in September, crypto exchange Kraken launched tokenized securities trading for European users through its xStocks platform, offering blockchain-based versions of U.S.-listed equities.
These developments underscore a growing trend of financial institutions investing in blockchain infrastructure to facilitate the issuance and trading of tokenized real-world assets. The total value of tokenized real-world assets has reached $26.5 billion, highlighting the significant potential of this market.
Conclusion
Amina’s participation in 21X represents a crucial step toward the mainstream adoption of tokenized securities. By addressing interoperability and regulatory concerns, this collaboration could pave the way for a more integrated and scalable digital asset market. As the EU continues to evaluate the DLT pilot regime, the involvement of regulated banks like Amina may prove instrumental in shaping the future of blockchain-based financial infrastructure.
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