Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
ABN AMRO (AS:ABNd), a prominent Dutch bank, successfully executed an onchain trade of tokenized assets against stablecoins, in collaboration with the Germany-regulated blockchain company, 21X. This event marked a significant step in the integration of traditional finance with blockchain technology.
The two firms completed a proof of concept (PoC) that involved the issuance of a token on the Polygon Amoy Testnet. The token was then traded as a pair with an e-money token, showcasing the potential for immediate and direct trading between different types of digital assets.
According to the announcement, the use of 21X’s on-chain order book smart contract was pivotal. It facilitated the simultaneous exchange of tokenized cash for the tokenized asset within a single transaction. This innovation demonstrates the growing capabilities of blockchain technology to streamline and enhance financial trading processes.
21X, based in Frankfurt, has been making strides in the blockchain space, particularly with its development of a blockchain-based exchange designed to list and trade tokenized securities. The firm received the green light from the German financial regulatory authority BaFin in December, signifying a notable achievement in regulatory compliance for blockchain-based financial services.
Tokenization, which involves representing tangible assets like stocks or bonds as blockchain tokens, has been drawing increasing interest from traditional financial institutions.
As blockchain-native companies like 21X obtain regulatory approvals in key financial markets, traditional finance companies are more inclined to form partnerships that further their initiatives in the realm of tokenization. This collaboration between ABN AMRO and 21X is a clear example of such advancements, potentially paving the way for broader adoption of blockchain technology in mainstream financial operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.