German fintech firms 21X and Cashlink Technologies have announced a strategic partnership to strengthen the country’s growing market for tokenised securities. The collaboration will integrate 21X’s regulated blockchain-based trading system with Cashlink’s tokenisation and registry services, creating an end-to-end infrastructure for digital asset trading.
The move comes as Germany’s tokenised securities market experiences rapid expansion. The total volume of issued tokenised securities grew from €31 million at the end of 2022 to approximately €615 million in the second half of 2024. By leveraging public blockchain technology—specifically Polygon PoS—the two companies aim to establish Germany’s first blockchain-based secondary market for these assets.
Regulatory milestones
21X was the first company in Europe to receive a license for a Distributed Ledger Technology (DLT) Trading and Settlement System (DLT TSS), allowing it to operate a blockchain-based exchange. Cashlink holds Germany’s first crypto securities registrar license and has also been approved by BaFin to offer digital asset custody services. Together, they aim to provide a fully regulated framework for tokenised securities, from issuance to secondary market trading.
Germany’s regulatory environment has played a key role in enabling this development. The introduction of the Electronic Securities Act (eWpG) has allowed for the issuance and management of securities via blockchain, encouraging wider adoption. Cashlink was the first company licensed to manage a crypto securities register, and with 21X’s license for a blockchain-based trading and settlement platform, the partnership is positioned to facilitate on-chain trading and settlement within a regulated environment.
Market potential
Max Heinzle, CEO of 21X, highlighted the significance of the partnership, stating: “Our partnership with Cashlink brings together two market leaders to unlock the full potential of tokenised securities. As the EU’s only fully regulated DLT exchange, 21X is the perfect platform for Cashlink customers looking to list their tokenised securities.”
