EU's Decentralized Ledger Technology (DLT) Pilot Regime initiates primary market transactions for the 21X project

EU's Decentralized Ledger Technology (DLT) Pilot Regime initiates primary market transactions for the 21X project

In a groundbreaking move, Germany's 21X, a new trading and settlement venue, has commenced its first live operations under the country's DLT (Distributed Ledger Technology) Pilot Regime. This regulatory framework, enacted to foster innovation in digital securities while ensuring investor protection, provides a controlled and supervised environment for the issuance, trading, and settlement of digital financial instruments.

21X, one of the first platforms in Germany to operate with full authorization to issue, trade, and settle digital securities (security tokens), offers a blockchain-based infrastructure that promises faster, more transparent, and efficient issuance and trading processes compared to traditional capital markets.

The inaugural live operations on 21X featured the issuance and trading of USMO, a new digital token representing US dollar yield exposure. USMO aims to provide investors with a yield-bearing digital asset, offering the benefits of blockchain tokens such as fractional ownership, rapid settlement, and transparency, combined with the yield characteristics expected from traditional fixed-income instruments.

Black Manta Capital Partners, a MiFiD regulated broker known for leveraging blockchain technology for digital securities and innovative asset structures, is the issuer of the USMO token. The firm oversees the creation, structuring, and ongoing management of the USMO token, ensuring compliance with applicable regulatory frameworks and investor protections.

SBI Digital Markets, a subsidiary of SBI Group with expertise in digital asset infrastructure and distribution, partners with Black Manta and 21X for tokenization and distribution. SBI Digital Markets handles the technical issuance of the digital token on the blockchain, ensuring compliance with KYC/AML and investor onboarding requirements. They also provide distribution channels and liquidity support to help investors access and trade USMO on the 21X platform.

This collaboration among 21X, Black Manta Capital Partners, and SBI Digital Markets illustrates a growing ecosystem to support digital securities, aiming to attract a new generation of investors while reducing friction and increasing transparency in capital markets. Future expansions are expected to include additional tokenized products and growth of secondary markets on the 21X platform.

The first live issuance and trading of USMO on 21X represents a landmark proof of concept for Germany’s DLT Pilot Regime, showcasing the viability of blockchain-based digital securities in a European regulated context. This marks a significant step forward in the integration of blockchain technology in regulated financial markets.

1. Black Manta Capital Partners, a MiFiD-regulated broker known for utilizing blockchain technology for digital securities and innovative asset structures, is issuing the USMO token, a new digital token representing US dollar yield exposure on the 21X platform.
2. SBI Digital Markets, a subsidiary of SBI Group with expertise in digital asset infrastructure and distribution, partners with both Black Manta and 21X for tokenization and distribution of USMO, ensuring KYC/AML compliance and investor onboarding.
3. The issuance and trading of USMO on the 21X platform, backed by stablecoins, offers investors a yield-bearing digital asset with the benefits of blockchain tokens, such as fractional ownership, rapid settlement, and transparency, combined with the yield characteristics of traditional fixed-income instruments.
4. The growing ecosystem, consisting of 21X, Black Manta Capital Partners, and SBI Digital Markets, aims to attract a new generation of investors while reducing friction and increasing transparency in capital markets through the use of blockchain technology in digital securities, and future expansions are expected to include additional tokenized products and growth of secondary markets on the 21X platform.

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