Partnerships within the financial sector are driving rapid progress in the tokenization of assets, with Distributed Ledger Technology (DLT) playing a crucial role in transforming traditional markets.
Two key collaborations—between 21X and Apex Group, and between Digital Asset and the Depository Trust & Clearing Corporation (DTCC)—highlight how major players are advancing the adoption of tokenized securities and collateral management, bringing efficiency, liquidity, and transparency to these markets.
Apex Group taps 21X
21X, a pioneering DLT-enabled exchange, and Apex Group, a global financial services provider, have forged a strategic partnership to enable the listing of tokenized securities on 21X’s platform. This development positions 21X as the first Distribution Ledger Technology exchange regulated by the European Securities Market Authority (ESMA), marking a significant milestone in the European financial landscape. The partnership will give Apex Group’s clients access to 21X’s platform, offering a secure, compliant avenue for trading and settling tokenized assets.
Apex Group, which manages over $3 trillion in assets, is rapidly expanding its digital asset capabilities. The company has integrated blockchain technology into several of its services, including fund operations, transfer agency, and custody. This partnership with 21X reflects the growing demand among asset managers and investors for DLT-based products. As tokenized assets become an essential part of Apex’s offerings, the collaboration will provide a comprehensive solution for financial institutions, brokers, and distributors looking to list tokenized securities on a fully regulated exchange.
Max J. Heinzle, founder and CEO of 21X, expressed his excitement about the partnership, stating, “We are thrilled to partner with Apex Group, a global leader in financial services. This announcement is a major milestone on our path to launching the first fully regulated DLT-based exchange and settlement system. As a major digital asset service provider, Apex Group’s dedication to list tokenized securities on 21X is also a historic step for capital markets globally.”
Peter Hughes, founder and CEO of Apex Group, highlighted the strategic importance of tokenization in the current market environment, saying, “In the dynamic landscape of fund management, staying ahead of the curve is crucial for success and asset tokenisation holds tremendous potential for transforming the fund administration and management landscape. Our partnership with 21X fits perfectly with our strategy of expanding our tokenized asset capabilities.”
The alliance between 21X and Apex Group is a crucial step in accelerating the adoption of tokenized securities in Europe. By leveraging 21X’s soon-to-be ESMA-regulated platform, both companies aim to streamline the issuance and trading of tokenized assets, which could bring substantial cost efficiencies and automation to capital markets. As Bruce Jackson, Chief of Digital Asset Funds and Business at Apex Group, noted, “21X is a true visionary and pioneer as they identified early the opportunity to develop a DLT-enabled capital market infrastructure that will shortly secure its license from ESMA. We are excited to be witnessing strong client demand, and we will be listing Apex funds as soon as 21X opens for business.”
DTCC taps Digital Asset
Meanwhile, in the United States, Digital Asset and DTCC are pushing the boundaries of tokenization in the collateral management space. Their recent U.S. Treasury (UST) Collateral Network Pilot aimed to demonstrate how DLT can improve liquidity, mobility, and transactional efficiency across the collateral lifecycle. The pilot involved several major financial institutions, including banks, central counterparties, custodians, and investors, all operating nodes on the Canton Network to execute tokenized collateral transactions.
The pilot was a success, completing 100 transactions that showcased the potential of tokenized collateral assets. Participants were able to use real-time data to settle margin calls, manage asset recalls, and enforce legal ownership in default scenarios. This real-world testing demonstrated the feasibility of using tokenized assets to optimize collateral processes, increasing both liquidity and operational efficiency.
Kelly Mathieson, Chief Business Development Officer at Digital Asset, emphasized the benefits of tokenization in collateral management, stating, “The successful completion of this pilot proves that tokenized assets could be leveraged to optimize collateral. In addition to the liquidity and operational efficiencies gained, the pilot demonstrates how tokenized collateral can improve market transparency, legal certainty of ownership in seizure/close out scenarios, and significant real-world benefits, including faster collateralization and enhanced regulatory oversight.”
Nadine Chakar, Global Head of DTCC Digital Assets, further highlighted the transformative potential of the technology, saying, “This pilot successfully demonstrated the power of tokenization – and its potential to enhance collateral mobility and unlock liquidity. The collaborative effort behind this innovative pilot reinforces DTCC’s commitment to partnering with the industry to harness DLT’s capabilities to advance a scalable and resilient infrastructure that ultimately drives increased value for our clients and the industry.”
The UST Collateral Network Pilot also addressed more complex business scenarios, such as the creation of digital twins for U.S. Treasuries, enabling real-time transaction updates and instant settlement for collateralized assets. This represents a significant step forward in applying blockchain technology across the full lifecycle of financial transactions, from execution to default and legal seizure of assets.
As blockchain continues to evolve, partnerships like those between 21X and Apex Group, and Digital Asset and DTCC, are shaping the future of financial markets. Through DLT, these collaborations are bringing greater efficiency, transparency, and security to the tokenized assets space, helping pave the way for broader adoption and integration of digital assets in global markets.
