Amina, a Swiss-regulated cryptocurrency bank, has joined a blockchain-based settlement platform for tokenized securities operating under the European Union’s DLT pilot system, marking another step towards integrating digital asset infrastructure with time-honored capital markets.
Zug company in Switzerland announced On Monday, it became a listing sponsor on the EU-regulated 21X platform, making Amina the first fully regulated banking participant there.
Amina said the move will allow it to support companies issuing tokenized securities on 21X through a partnership with Tokeny, a Luxembourg-based company that provides technology to create and manage tokenized financial assets.
The collaboration aims to remove a key barrier to the institutional adoption of tokenized assets by connecting regulated banks to the issuance and trading of tokenized securities.
In December 2024, 21X received infrastructure approval under the EU’s DLT pilot program, enabling it to operate a regulated market for blockchain-based securities in a regulatory test environment.
There was a “lack of interoperability between platforms with tokenized assets.” quoted by European Financial Services practice Baker McKenzie in June as one of the main obstacles to the adoption of tokenization among financial institutions. “Scale can only be achieved when many market participants transact with each other on common or interconnected platforms,” Zurich partner Yves Mauchle wrote on the firm’s blog.
Launched in 2023, the DLT framework enables market operators to experiment with blockchain-based trading and settlement of financial instruments within a regulatory sandbox. The program is designed to aid regulators assess how the technology can fit into existing market infrastructure.
Despite its early rollout, the system has faced scrutiny from industry participants who warn that its current limitations could prevent European onchain markets from developing and competing with other jurisdictions. It is unclear whether the participation of regulated banks such as Amina will aid accelerate adoption.
Related: Cryptocurrency exchanges gain as the market for tokenized goods grows to $7.7 billion
Robust growth in tokenized real-world assets
The development comes at a time when financial institutions are increasingly investing in blockchain infrastructure for tokenized assets. In the United States, institutions including BNY, Nasdaq and S&P Global have recently supported the development of the Canton Network, while Europe is testing regulated blockchain trading systems such as 21X under the EU’s DLT pilot program.
In February, eight EU-regulated digital asset companies called on policymakers to speed up digital assets legislation, warning that the bloc was at risk of falling behind the United States and other jurisdictions in developing tokenized financial markets.
There is no doubt that positive changes are taking place. In September, cryptocurrency exchange Kraken launched trading in tokenized securities for European users through the xStocks platform, which offers blockchain-based versions of US-listed stocks.
Two months later, tokenization platform Ondo received approval from regulators in Liechtenstein to offer trading in tokenized shares to European investors.
Related: Crypto Biz: Kraken Connects to the Fed
