Germany’s BaFin has granted a Boerse Stuttgart Group subsidiary a DLT Trading and Settlement System license under the EU’s DLT Pilot Regime, following a process conducted together with ESMA and the ECB. The license provides the regulatory foundation for Seturion, the group’s pan-European digital settlement platform. It is the fifth DLT TSS license granted under the regime, but the first for a European exchange group.
However, it is not the only exchange group with a DLT Pilot license. 360X, a joint venture between Deutsche Boerse and Commerzbank, holds a DLT MTF license and notably requested no exemptions from existing regulations. CSD Prague has a settlement system license.
The Seturion license means banks, brokers and trading venues across Europe will be able to connect to Seturion for tokenized settlement. The initial focus is structured products, where the partners form a complete chain. Societe Generale plans to issue tokenized structured products, flatexDEGIRO will distribute them to its 3.5 million retail investors, SG FORGE’s EURCV and USDCV stablecoins will settle the cash leg on Seturion, and Nasdaq Stockholm joins Boerse Stuttgart’s own venue on the trading side. During the ECB’s 2024 DLT settlement trials, Seturion also tested central bank money settlement with six German banks including Commerzbank, Deutsche Bank, DZ Bank and LBBW. No production launch date was announced.
The license arrives while the DLT Pilot Regime’s volume caps are under active negotiation. The current €6 billion ceiling per infrastructure is the binding commercial constraint for a platform designed to aggregate volume from multiple venues. The European Commission has proposed raising it to €100 billion as part of its Market Integration and Supervision Package (MISP). EU finance ministers adopted €300 billion as their negotiating position.
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