ABN AMRO and 21X Complete Onchain Trade of Tokenized Assets

According to CoinDesk, Dutch bank ABN AMRO has successfully executed an onchain trade involving tokenized assets and stablecoins in collaboration with Germany-regulated firm 21X. This initiative marks a significant step in the financial sector's exploration of blockchain technology. The two companies completed a joint proof of concept (PoC) by issuing a token on the Polygon Amoy Testnet. This token was paired with an e-money token, facilitating a seamless trading process. The deployment of 21X's on-chain order book smart contract enabled the exchange of tokenized cash and the tokenized asset in a single transaction, as stated in an announcement on Thursday. Frankfurt-based 21X, which is developing a blockchain-based exchange for listing and trading tokenized securities, received approval from the German regulator BaFin in December. This regulatory endorsement is a crucial milestone for blockchain-native companies like 21X, as it allows traditional financial (TradFi) firms to engage in partnerships with greater assurance. The tokenization of real-world assets, such as stocks or bonds, has garnered increasing interest from TradFi firms, highlighting the growing integration of blockchain technology in traditional finance.