Finexity has announced a collaboration with fellow German DLT fintech Cashlink. The partnership with Cashlink is part of Finexity’s efforts to navigate regulations effectively, seeking to apply for a licence to operate as an exchange and settlement system under the DLT Pilot Regime. This regime exempts certain rules, allowing direct engagement between consumers and exchanges.

Finexity, originally in real estate tokenisation, has diversified its asset portfolio to include precious metals, collectibles like vintage cars, and various other assets. Cashlink, a key crypto securities registrar in Germany with a provisional license from BaFin, operates within a regulatory environment similar to the DLT Pilot Regime, eliminating the need for a central securities depository (CSD).

Michael Duttlinger, co-founder and CEO of Cashlink, highlights the collaboration’s importance, stating that “the respective ecosystems are expanding to include issuers, investors, and connected distribution platforms and financial institutions.”


Capital market 2.0

Finexity aims to achieve regulated issuance of crypto securities, expansion of distribution channels through ecosystem pooling, and the evolution of its secondary market into a comprehensive trading venue. This effort is facilitated by leveraging Effecta GmbH’s investment brokerage license and collaborating with Cashlink, all subject to approval under the DLT Pilot Regime.

Paul Huelsmann, founder and CEO of Finexity, hails the collaboration as a crucial step towards ushering in Capital Market 2.0, citing the complementary nature of Finexity’s trading and settlement system with Cashlink’s expertise in crypto securities registry management.

German fintechs Finexity and Cashlink join forces in regulatory endeavour