ABN AMRO and 21X have successfully conducted a groundbreaking on-chain trade of tokenized assets against stablecoins, marking a significant milestone in the development of tokenization. This joint proof of concept paves the way for seamless integration of blockchain technology into existing financial infrastructure.
ABN AMRO and 21X Pioneer Onchain Trade of Tokenized Assets Against Stablecoins
Joint Proof of Concept Marks a Milestone in Tokenization Efforts
Dutch bank ABN AMRO has successfully conducted an onchain trade of tokenized assets against stablecoins alongside Germany-regulated 21X. This groundbreaking achievement is the result of a joint proof of concept (PoC) for the issuing of a token on the Polygon Amoy Testnet, which was listed as a trading pair with an e-money token.
The deployment of 21X‘s on-chain order book smart contract enabled trading between tokenized cash and the tokenized asset in one single transaction. This innovative approach has significant implications for the traditional financial sector, as it paves the way for seamless integration of blockchain technology into existing infrastructure.
Tokenization Gains Momentum
Tokenization – the representation of real-world assets such as stocks or bonds as tokens on a blockchain – has become an area of interest among traditional financial (TradFi) firms in recent years. The success of 21X in securing regulatory approval from German regulator BaFin in December has created a favorable environment for TradFi companies to enter partnerships with blockchain-native companies like 21X.
This collaboration enables TradFi companies to advance their tokenization plans with greater confidence, as they can now leverage the expertise and infrastructure of blockchain-native firms. The joint efforts of ABN AMRO and 21X demonstrate the potential of this partnership model in driving innovation and adoption of tokenized assets.
Implications for the Financial Sector
The onchain trade of tokenized assets against stablecoins marks a significant milestone in the development of tokenization. As more companies explore this space, we can expect to see increased adoption and innovation in the traditional financial sector. The successful collaboration between ABN AMRO and 21X sets a precedent for future partnerships and highlights the potential benefits of integrating blockchain technology into existing infrastructure.
ABN AMRO is a Dutch bank and financial services company headquartered in Amsterdam.
Founded in 1824, it is one of the oldest banks in the Netherlands.
The bank provides a range of financial services including retail banking, corporate banking, and investment banking.
ABN AMRO operates in over 40 countries with a strong presence in Europe, Asia, and the Americas.
As of 2022, the bank has assets worth over €700 billion and employs around 18,000 people worldwide.
In related news, our article ‘What 2025 Holds for Tokenized Real World Assets’ provides further insights into the trends and developments shaping the tokenization landscape.
