21X, an exchange for trading and settlement of digital assets in Europe, has announced a strategic collaboration with Chainlink. According to an announcement made on the X platform, 21X is preparing to launch a regulated trading and settlement infrastructure for tokenized money and securities.
21X’s on-chain trading, matching, and settlement system will leverage Chainlink’s standard for on-chain finance. Such integration will enhance 21X’s tokenized assets with high-quality data and enable cross-chain interoperability.
Collectively, Chainlink and 21X will develop on-chain secondary market price feeds for ask and bid prices on 21X’s blockchain’s trading and settlement system.
Improved market liquidity and user interest
As part of the collaboration, Chainlink’s cross-chain interoperability protocol (CCIP) will become a core component of 21X’s multi-and cross-chain strategy. The protocol will enable 21X users and customers to access tokenized assets and stablecoins issued on various blockchain networks.
The partnership seeks to expand the reach and reliability of 21X’s tokenized securities and money by broadening access across several blockchain networks.
By adopting Chainlink’s CCIP, 21X can trade, match, and settle its tokenized products across different blockchains, enabling various customers access to varied financial instruments. This broadened cross-chain interoperability enhances liquidity in secondary markets and consequently could attract more interest in blockchain-based assets.
Unleashing the power of tokenized assets
Traditional instruments like real estate, stocks, and bonds are physical assets that are traded through brokers or conventional financial markets. When these traditional assets are transformed into digital tokens using blockchain technology, they are called tokenized securities.
These tokens can be bought, sold, and exchanged on blockchain networks that anyone with an internet connection can access. Customers can trade them 24/7, incredibly improving the assets’ liquidity. Users can therefore buy and sell at more advantageous prices than traditional securities.
Trading these instruments on a distributed ledger technology helps eradicate the need for middlemen and as a result, cuts down on the costs associated with purchasing and selling securities.
Tokenized assets can be split into smaller units, allowing customers to co-own properties like real estate into smaller shares. These assets also be traded internationally, creating new opportunities for firms and investors to access new markets.
