21X selects eflow for the compliance of its DLT exchange

21X, a DLT market infrastructure for trading digital assets, has applied for a license to operate a DLT-based trading and settlement system under the EU’s DLT regime. Now, it announced the selection of digital compliance tools from UK-based regtech scaleup, eflow Global, to support its regulatory compliance strategy.

With 21X being regulated as a financial institution, it will be expected to meet high standards of compliance set by regulatory bodies. This meant that it was critically important for 21X to select a technology partner that was able to meet all of its regulatory technology requirements as it develops a trading system that is fully ESMA-regulated.

Officials from 21X chose to partner with eflow for its robust compliance tools, which meet regulatory demands for digital market infrastructure. They were particularly impressed with eflow's holistic market behaviour analysis, which considers both micro factors and global events to better differentiate between standard market changes and fraudulent behaviour.

Also commenting on this partnership, representatives from eflow said the regulatory landscape is evolving rapidly, with external threats, the role of AI, and the sheer volume of upcoming regulations creating mounting pressure for businesses. 21X is at the forefront of innovation in the blockchain and crypto sectors and their partnership highlights the crucial importance of firms having a truly integrated regulatory solution as a way of staying ahead of the curve. They look forward to continuing to support the business as it continues to scale in the coming years.

What does 21X do?

21X is a Frankfurt-based fintech, developing a blockchain-powered exchange for tokenized assets, which will operate under the regulatory supervision of the European Securities and Markets Authority (ESMA). With the institutional adoption of tokenized securities, 21X is positioned to enable smart contract-based issuance, trading, and settlement of tokenized stocks, bonds, and funds.

21X has submitted its license application to operate a DLT trading and settlement system (DLT TSS) and is expected to be one of the first companies authorised to operate under the EU DLT regime.