LeveL Markets and 21X Forge Regulated Path to Tokenized Assets

BOSTON and FRANKFURT, Germany – January 29, 2026 – In a landmark move set to bridge the divide between traditional finance and the burgeoning digital asset space, U.S. equities marketplace LeveL Markets has announced a strategic partnership with 21X, the first company to operate a fully regulated DLT-based trading and settlement system in the European Union. The collaboration aims to provide LeveL Markets' institutional client base with direct, streamlined access to tokenized financial instruments, effectively integrating next-generation blockchain rails into established trading workflows.

This partnership represents one of the most significant steps to date in solving the puzzle of institutional adoption of tokenized assets. By connecting a major U.S. Alternative Trading System (ATS) operator with a regulated European digital marketplace, the two firms are creating a practical, transatlantic gateway for professional traders to engage with securities that exist on a blockchain, a process that has until now been fraught with regulatory uncertainty and technical friction.

A Regulated Gateway to Digital Assets

At the heart of this new venture is the pioneering regulatory status of 21X. In September 2025, the Frankfurt-based firm secured a license from Germany's Federal Financial Supervisory Authority (BaFin) to operate a combined DLT Trading and Settlement System (DLT-TSS) under the EU's new DLT Pilot Regime. This framework was specifically designed to foster innovation by allowing for the trading and settlement of tokenized financial instruments on a distributed ledger within a controlled, regulated environment.

Achieving this status was the culmination of a rigorous 18-month process involving not just BaFin but also the Deutsche Bundesbank and the European Securities and Markets Authority (ESMA). For institutional investors, this regulatory seal of approval is paramount. It provides the legal clarity and investor protection standards they require, transforming tokenized assets from a speculative frontier into a viable, compliant asset class. By operating within this framework, 21X offers a level of trust and security comparable to traditional stock exchanges, a critical factor that has been a major barrier to entry for large, risk-averse financial institutions.

The 21X platform combines the functions of a multilateral trading facility (MTF) with a settlement system, enabling it to handle the entire lifecycle of a digital security trade on-chain. This integrated model is designed to eliminate many of the inefficiencies and risks inherent in the legacy financial system.

Bridging Worlds Without Breaking Workflows

The partnership's core value proposition lies in its promise of seamless integration. LeveL Markets, formed through the 2022 merger of LeveL ATS and Luminex, serves a vast network of institutional clients, including asset managers, banks, and broker-dealers, executing billions of shares daily. These firms operate on highly sophisticated and deeply embedded trading stacks, and the prospect of re-architecting these systems for a new asset class has been a non-starter.

This collaboration directly addresses that pain point. Instead of forcing clients to build new infrastructure, the partnership will embed 21X's wallet-based trading rails directly into LeveL Markets' existing ecosystem. This allows institutional traders to access tokenized stocks, bonds, and funds using the same tools, protocols, and operational models they rely on for their traditional equity workflows.

Steve Miele, CEO at LeveL Markets, emphasized this focus on continuity. "LeveL Markets has always focused on improving execution quality and reducing friction for institutional participants," he stated. "This partnership with 21X extends that mission into the next generation of market infrastructure, giving our clients seamless access to tokenized instruments while preserving the experience, controls and performance they expect."

Echoing this sentiment, 21X CEO Max Heinzle highlighted the importance of lowering the barrier to entry. "Institutions want the benefits of tokenization without re-engineering their entire trading stack," added Heinzle. "By partnering with LeveL Markets, we will embed wallet-based rails directly into proven institutional workflows, making tokenized markets immediately usable for professional traders."

The Technology Powering a New Financial Model

Beyond regulatory compliance and ease of integration, the partnership unlocks the core technological benefits of distributed ledger technology. The 21X system facilitates atomic settlement, a process where the transfer of the asset and the payment occur simultaneously and are inextricably linked within a single transaction on the blockchain. This is made possible through the use of smart contracts and compliant stablecoins for payment.

This model of atomic Delivery versus Payment (DvP) stands in stark contrast to the traditional settlement cycle, which can take one or more business days (T+1). The legacy process introduces settlement risk—the danger that one party to a trade will fail to deliver on its obligation. Atomic settlement eliminates this risk entirely. Furthermore, by reducing the number of intermediaries required to clear and settle a trade, the DLT-based approach promises to significantly lower transaction costs and operational overhead.

21X has also adopted a technology-agnostic, multichain strategy. After initially launching, it expanded its operations to the Stellar network, demonstrating its flexibility to operate across different public blockchains. This approach ensures the platform is not locked into a single technology and can adapt as the DLT landscape evolves, offering issuers and investors a choice of underlying infrastructure.

Charting the Course in an Evolving Market

While groundbreaking, the LeveL Markets and 21X initiative enters an increasingly competitive field. Other major players, such as the SIX Digital Exchange (SDX) in Switzerland, have already established regulated venues for digital assets. Meanwhile, traditional financial giants like Nasdaq and Deutsche Börse are actively developing their own DLT-based solutions. However, this partnership's unique combination of a U.S. institutional equities powerhouse with a fully regulated EU DLT exchange creates a distinct and powerful offering.

The timing aligns with a surge in institutional interest. Market analysts project the tokenized asset market could swell to trillions of dollars in trading volume by 2030, as everything from corporate bonds to real estate and private equity becomes represented on-chain. With a pipeline of over 100 financial instruments ready for listing, 21X is poised to capture a significant share of this growth, and the LeveL Markets partnership provides a vital distribution channel to a deep pool of institutional capital.

As 21X also plans its expansion into the U.S. market, this collaboration serves as a crucial foothold and learning experience. Together, the two firms are not just building a bridge between old and new financial worlds; they are laying down a foundational piece of infrastructure for a future, unified trading environment where traditional and digital securities can coexist and be traded with equal ease, security, and efficiency.