Cashlink and 21X Partner to Offer Comprehensive Tokenization Solution in Germany
In a landmark move for the European digital securities market, Cashlink and 21X, two of Germany’s leading tokenization startups, have announced a strategic collaboration. This partnership will provide a comprehensive, end-to-end tokenization and trading solution tailored for the German market, further cementing the country’s position as a leader in blockchain-based securities.
Bridging the Gap in Germany’s Digital Securities Landscape
Cashlink, Germany’s largest crypto securities registrar, specializes in the issuance, registry, and custody of blockchain-based securities. The company has played a pivotal role in advancing Germany’s Electronic Securities Act (eWpG), which allows issuers to bypass traditional central securities depositories, significantly reducing costs.
Meanwhile, 21X is set to launch Europe’s first fully licensed DLT-based trading and settlement system (DLTSS) under the EU’s DLT Pilot Regime. This initiative will introduce a regulated secondary market for digital securities, addressing a longstanding challenge in the industry—limited liquidity and trading options for tokenized assets.
“Our partnership with Cashlink brings together two market leaders to unlock the full potential of tokenized securities,”said Max Heinzle, CEO of 21X. “As the EU’s only fully regulated DLT exchange, 21X is the perfect platform for Cashlink customers looking to list their tokenized securities.”
By combining forces, Cashlink will handle digital securities issuance and custody, while 21X will provide a seamless trading and settlement infrastructure, offering investors greater accessibility and liquidity.
The DLT Pilot Regime: Unlocking Secondary Markets for Tokenized Securities
Under existing European regulations, secondary trading of digital securities has faced hurdles due to legal constraints. The DLT Pilot Regime, a European Commission initiative, seeks to relax restrictions on blockchain-based trading, making it easier for tokenized assets to be bought and sold.
Key features of the DLT Pilot Regime include:
- Direct trading without intermediaries – Unlike traditional exchanges that require brokers, the regime allows for peer-to-peer transactions.
- Integrated trading and settlement – 21X can execute and settle transactions instantly within a single venue.
- Use of permissionless blockchains – Both 21X and Cashlink operate on Polygon PoS, ensuring security, transparency, and efficiency.
These advancements will make it significantly easier for institutions and retail investors to trade digital securities, boosting adoption across the European market.
21X: Bringing Liquidity to Tokenized Securities
21X is preparing to launch its on-chain trading venue, which will utilize a central limit order book (CLOB) system to facilitate price discovery and efficient trading. Unlike traditional markets that settle transactions in fiat currency (such as euros), 21X’s platform will settle trades instantly using stablecoins tied to the trading pair.
To address regulatory concerns about permissionless blockchains, 21X incorporates permissioned elements such as Know Your Customer (KYC) verification, ensuring that all users are identified and preventing illicit activities.
Cashlink: A Pioneer in Digital Securities Issuance
Having facilitated over €250 million worth of digital securities issuances, Cashlink has emerged as a leading force in the European tokenization space. The company was the first recipient of a crypto securities registry license under Germany’s Electronic Securities Act (eWpG) and recently secured a crypto custody license to further expand its offerings.
Cashlink’s notable achievements include:
- Two digital bond issuances for KfW bank worth €150 million.
- Multiple tokenized securities issuances across different asset classes.
- Strategic partnerships with Finexity and other industry players.
With 21X now providing a regulated secondary trading venue, Cashlink customers can seamlessly list their tokenized securities, eliminating one of the biggest barriers to adoption—lack of liquidity.
The Future of Tokenized Securities in Europe
While this partnership is a major milestone, neither company intends to operate exclusively with each other. 21X will onboard multiple issuers, having already partnered with fund administrator Apex, Singapore’s SBI Digital Markets, and ABN AMRO, which recently conducted a successful tokenization trial on a permissionless blockchain.
For Germany and the broader EU, this collaboration marks a critical step toward mainstream adoption of blockchain-based securities. By offering a fully regulated ecosystem for issuance, trading, and settlement, Cashlink and 21X are poised to reshape the future of capital markets—providing investors with unprecedented access to tokenized assets.
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