In a significant development for the integration of traditional finance and blockchain technology, Chainlink, the leading oracle platform, has partnered with 21X, the first blockchain-based exchange for tokenized securities licensed under the European Union’s Distributed Ledger Technology (DLT) regime. This collaboration marks a pivotal step in delivering real-time, verifiable market data for tokenized securities listed on the 21X platform.
Powered by the Chainlink Runtime Environment (CRE), this initiative facilitates the automatic retrieval, aggregation, and publication of vital market information, such as best bid and ask prices, quantities, and last traded prices for listed securities. The data will be directly accessible on the public Polygon blockchain, enabling a multitude of use cases for EU-regulated tokenized equities, debt securities, and funds. These applications could span from collateral utilization in lending protocols to automated portfolio management.
Max Heinzle, CEO of 21X, expressed enthusiasm about the partnership, stating that integrating Chainlink allows the exchange to provide the transparency and auditability essential for institutional participants to engage onchain. He emphasized that this move is foundational in uniting traditional capital markets with the burgeoning blockchain economy.
The collaboration not only enhances the accessibility of market data but also simplifies integration for developers, allowing various market participants, custody providers, and risk management systems to seamlessly access real-time valuations for tokenized assets. Fernando Vazquez, President of Banking & Capital Markets at Chainlink Labs, described 21X as a significant player in the regulated onchain market. He directed attention to the broader implications this adoption could have for institutional capital entering the blockchain space.
As part of its ongoing strategy, 21X plans to further develop its integration with Chainlink by incorporating pre-trade data, deeper analytics, and a wider variety of asset classes. These enhancements aim to solidify the utility of onchain markets and ensure data remains readily available through the 21X platform interface and other onchain endpoints. This integration is seen as a critical step towards fostering a more transparent and efficient financial ecosystem, ultimately paving the way for institutional capital to transition onchain.
Chainlink, recognized as the industry-standard oracle platform, plays a crucial role in bringing capital markets onchain and supporting the decentralized finance (DeFi) landscape. Its infrastructure has been adopted by numerous major financial institutions, facilitating the secure and efficient transfer of value across various blockchain applications. With its robust set of data sources, interoperability options, compliance measures, and privacy standards, Chainlink continues to underpin advanced use cases in the world of institutional tokenized assets and beyond.
21X, based in Frankfurt, sets a precedent with its fully regulated DLT trading and settlement system, which launched recently. The institution aims to revolutionize capital markets by enabling atomic trading devoid of counterparty or credit risks, featuring smart contracts for the issuance, trading, and settlement of tokenized assets. This innovative approach positions 21X as a leader in the evolution from traditional to tokenized capital markets, driving the industry towards a more interconnected and efficient future.
