Two of Germany’s highest profile tokenization startups, Cashlink and 21X are now collaborating to offer a holistic solution for the German market. Cashlink provides securities issuance services and is Germany’s largest crypto securities registrar, where crypto securities refer to blockchain-based digital securities. And 21X landed the first license in Europe under the DLT Pilot Regime for a combined DLT trading venue and settlement system (DLTSS) for digital securities.
Germany’s novel laws support the issuance of digital securities, with Germany leading the way in Europe. However, secondary market laws are created by the EU rather than locally. So holders of securities lack second marketplaces. That’s until 21X launches.
The DLT Pilot Regime relaxes laws that otherwise make it tricky to offer secondary trading for digital securities. For example, it waves rules that require exchanges to use brokers as intermediaries, allowing consumers to engage directly. It also allows a single venue to handle both trading and settlement, provided the infrastructure has the appropriate licensing. Plus, the DLT Pilot Regime supports the use of permissionless blockchains. Both Cashlink and 21X us the Polygon PoS blockchain.
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