In a move that screams “we’re hip with the times,” ABN AMRO, the Dutch banking behemoth, has wrapped up a pilot program for tokenized securities on Ethereum. Because, why not? 🚀
Teaming up with 21X, a Frankfurt-based financial services firm, the bank conducted this trial in January 2025. The goal? To see if blockchain could replace the archaic, snail-paced settlement methods we’ve all come to tolerate. Spoiler: it did. 🎉
Inside the Trial: How It Worked
The pilot revolved around issuing and settling tokenized securities using stablecoins, cutting out middlemen, and slashing settlement times. ABN AMRO created an ERC-3643 token on the Polygon Amoy Testnet, paired with an ERC-20 “E-Money Token” on 21X’s blockchain-powered platform. Fancy, huh? 💎
While the specific asset tested remains a mystery, the underlying goal was crystal clear: to see if blockchain could replace the convoluted clearing and settlement systems banks cling to like a security blanket. 🛡️
The successful test marks a new chapter for 21X’s digital asset exchange, where the token will be traded. The company already has an EU-regulated trading license, so they’re not messing around. 🏛️
Under the arrangement, 21X will serve as the trading venue, while ABN AMRO will be the official custodian. The bank proved its worth through a joint proof of concept (PoC), because, of course, they did. 🏆
ABN AMRO and 21X to Expand Their Partnership
Max Heinzle, CEO of 21X, described the test as a step toward a more efficient, cost-effective trading environment. He stated:
“As part of our launch preparations we are now in the process of onboarding institutional participants. The PoC with ABN AMRO is a great example of raising awareness of the efficiency gains and cost savings that can be realized with our on-chain trading and settlement system.”
Both companies plan to extend their partnership, with ABN AMRO integrating 21X’s upcoming exchange to give its customers access to digital assets. Because who doesn’t love a good partnership? 🤝
The deal is a significant milestone for the two entities working together “to offer a more efficient and inclusive capital market ecosystem.” Translation: they’re making banking less boring. 🎢
Not the First
This isn’t ABN AMRO’s first rodeo with digital assets. In 2023, it issued a €5 million tokenized green bond on a public blockchain, because saving the planet is always in style. 🌍
The bank has also been involved in trials with the European Central Bank (ECB) exploring wholesale central bank digital currencies (CBDCs). In these experiments, ABN AMRO tested how a digital euro could be used to settle securities transactions on DLT networks. Because, why not? 💶
By working with 21X, ABN AMRO is taking another step toward integrating blockchain into mainstream financial services, proving that tokenization is more than just a buzzword. It’s the future. 🌐
As for 21X, the company is a newbie in the digital asset space, but its ambitions are sky-high. It secured its DLT Pilot Regime license in December 2024, making it one of the first regulated digital asset exchanges in Europe. 🏅
Its platform is designed for fully on-chain trading, meaning tokenized stocks, bonds, and funds can be issued, traded, and settled without traditional financial intermediaries. Because who needs middlemen when you have blockchain? 🚀
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2025-01-30 19:52