Fintech innovations continue to redefine the financial landscape. A new alliance promises to invigorate the Swiss market. Discover how two leaders are joining forces to shape the future.
21X, a German operator of digital asset platforms, is partnering with Zühlke, a technology consulting firm based in Schlieren, to encourage the adoption of tokenized securities trading among institutional clients. This strategic partnership combines 21X’s DLT-based trading infrastructure with Zühlke’s technical expertise in financial services and digital assets. As the official implementation partner, Zühlke will provide consulting and integration services to facilitate client onboarding and optimize systems for institutions such as banks, brokers, custodians, and stablecoin providers. Together, they aim to connect clients and partners from their respective networks, including asset managers, issuers, market makers, and stablecoin issuers. Additionally, Zühlke will assist 21X clients with IT architecture, order management, and accounting systems to enhance the operational efficiency of on-chain trading. Current Zühlke clients will also have the opportunity to list DLT financial instruments on 21X’s platform. To help institutions evaluate the potential of on-chain trading, the two companies will develop proof of concept programs illustrating specific use cases.

The European financial landscape is undergoing a major transformation with the emergence of tokenized securities. In this context, a strategic alliance between 21X, a digital asset exchange operator based in Germany, and Zühlke, a technology and innovation consulting firm based in Schlieren, aims to catalyze the adoption of this new trading mode among institutional clients.

What are the objectives of this strategic partnership?

This partnership aims to combine the strengths of both companies to facilitate the adoption of tokenized securities in Europe. 21X brings its DLT (Distributed Ledger Technology)-based trading infrastructure, while Zühlke offers its technical expertise in financial services and digital assets. Together, they seek to create robust and innovative solutions that meet the evolving needs of financial institutions.

Acting as the official implementation partner, Zühlke will provide consulting and integration services, thereby supporting the onboarding of new clients and the optimization of systems for institutions such as banks, brokers, custodians, and stablecoin providers. This collaboration also connects clients and partners from both companies’ networks, including asset managers, issuers, market makers, and stablecoin issuers.

How does this collaboration strengthen 21X’s trading infrastructure?

The trading infrastructure of 21X is based on DLT technology, providing a secure and transparent platform for trading tokenized securities. By partnering with Zühlke, 21X benefits from in-depth technical expertise that allows for optimization of IT architecture, order management, and accounting systems. This results in increased operational efficiency in on-chain trading, ensuring a smooth and reliable experience for institutional users.

Zühlke’s services are not limited to technical integration. They also include the development of proof of concept programs that demonstrate specific use cases of on-chain trading. These programs help financial institutions evaluate the potential and benefits of this new form of trading, thus facilitating faster and more effective adoption.

What benefits are there for clients and partners of both companies?

Clients of 21X benefit from Zühlke’s technical expertise, which helps them integrate and optimize their systems for trading tokenized securities. This includes improving IT architecture, order management, and accounting systems, ensuring optimal operational efficiency. Additionally, existing Zühlke clients can now list their DLT financial instruments on the 21X platform, thereby expanding their reach and market opportunities.

By connecting the networks of both companies, this collaboration opens doors to a multitude of potential partners, including asset managers, issuers, and market makers. This synergy creates a dynamic ecosystem where innovations can develop and spread faster, facilitating the growth of the tokenized securities market in Europe.

What are the future prospects of this partnership?

Initially focused on institutions within the European financial sector, this alliance between 21X and Zühlke anticipates international expansion based on market demand. The aim is to position this collaboration as a central pillar in the development of trading infrastructures for tokenized securities on a global scale.

Max Heinzle, CEO of 21X, stated: “Recognizing the rapid integration requirements of our institutional partners, we have strategically aligned with Zühlke to support the rapid expansion of our market infrastructure ecosystem. Their deep understanding of blockchain technology, combined with their established expertise in the financial sector, gives us confidence that they will respond effectively to these demands.”

On his part, Stefan Grasmann, Chief of Blockchain at Zühlke, commented: “We are excited to partner with 21X and contribute to the growth of the tokenized securities market. But this is much more than just a collaboration; it is a catalyst, allowing companies to effectively bridge the gap between traditional finance and the dynamic ecosystem of digital assets.”

How can institutions evaluate the potential of on-chain trading?

To assist financial institutions in evaluating the potential of on-chain trading, 21X and Zühlke are developing proof of concept (POC) programs that demonstrate specific use cases. These POCs are essential for illustrating the tangible benefits of trading tokenized securities, such as increased transparency, reduced transaction costs, and improved liquidity of financial assets.

The POC programs also allow institutions to test and evaluate the proposed solutions before deploying them at scale. This reduces the risks associated with adopting new technologies and ensures a smooth transition to DLT-based trading infrastructures.

What is the impact of this collaboration on the European financial market?

The collaboration between 21X and Zühlke represents a significant step in the evolution of the European financial market towards greater integration of cutting-edge technologies. By promoting the adoption of tokenized securities, this alliance helps modernize financial infrastructures and make them more resilient, transparent, and efficient.

Moreover, by facilitating connections between various market players, this initiative encourages innovation and competition, thus stimulating the development of new financial products and services. This could also attract more investments into the fintech sector in Europe, thereby strengthening the continent’s position on the global stage of digital finance.

What are the international perspectives following this alliance?

Although the partnership initially focuses on the European market, expectations are high for international expansion based on market demand. By capitalizing on successes and lessons learned in the European region, 21X and Zühlke are well-positioned to bring their innovative solutions to other global markets.

This expansion could open new opportunities for financial institutions worldwide, allowing them to adopt advanced and secure tokenized securities trading infrastructures. Furthermore, it could encourage other similar collaborations, thus enhancing the global adoption of tokenization technologies in the financial sector.

How do innovations in fintech influence this partnership?

Continuous innovations in the field of fintech play a crucial role in the success of this partnership. Technological advancements such as blockchain, smart contracts, and the tokenization of financial assets enable the creation of more secure, transparent, and efficient trading solutions. Zühlke, with its technical expertise, facilitates the integration of these innovations into traditional financial systems, making the transition to DLT infrastructures smoother for financial institutions.

Moreover, the growing demand for decentralized digital financial solutions drives companies like 21X and Zühlke to constantly innovate, developing products and services that meet the evolving needs of the market. This dynamic of innovation is essential for maintaining competitiveness and relevance of the solutions offered in an ever-evolving market.

What are the main challenges to overcome for this initiative?

Despite the promising advantages, several challenges must be overcome to ensure the success of this initiative. One of the main obstacles is regulation. Tokenized securities operate within a regulatory framework that is still developing, and it is essential to ensure that the proposed solutions comply with the laws and regulations in each jurisdiction.

Furthermore, interoperability between different platforms and financial systems presents another major technical challenge. Ensuring seamless integration between existing infrastructures and new DLT-based solutions requires deep coordination and technical expertise.

Finally, user adoption remains a critical factor. Although financial institutions are increasingly interested in the benefits of tokenized securities, it is crucial to clearly demonstrate their added value and provide adequate support to encourage their adoption and effective use.

What are the benefits for investors and asset managers?

Investors and asset managers benefit significantly from the adoption of tokenized securities through this collaboration. Tokenization allows for increased liquidity of financial assets, facilitating their exchange and making investments more accessible and flexible. Asset managers can thus diversify their portfolios more effectively by accessing a broader range of financial instruments.

Additionally, the transparency offered by DLT technology reduces fraud risks and increases investor confidence. Transactions are immutably recorded on the blockchain, ensuring complete traceability and easy verification of assets. This enhances the security and reliability of financial operations, which is particularly attractive for institutional investors seeking safe and transparent solutions.

How does this partnership influence innovation in the fintech sector?

By uniting their resources and expertise, 21X and Zühlke stimulate innovation in the fintech sector in Europe. This collaboration encourages the development of new technologies and solutions that push the boundaries of traditional finance. Continuous innovation enables the creation of more sophisticated financial products tailored to the specific needs of financial institutions and modern investors.

Furthermore, this initiative serves as a model for other collaborations in the fintech sector, demonstrating how strategic partnerships can accelerate the adoption of emerging technologies and promote market growth. By investing in research and development, 21X and Zühlke also contribute to strengthening the European fintech ecosystem, attracting new talent and investments to the region.

What are the key leaders’ responses on this partnership?

The leaders of both companies have expressed shared optimism regarding the prospects of this partnership. Max Heinzle, CEO of 21X, emphasized the importance of strategic alignment with Zühlke to support the rapid expansion of the tokenized securities trading ecosystem: “Recognizing the rapid integration requirements of our institutional partners, we have strategically aligned with Zühlke to support the rapid expansion of our market infrastructure ecosystem. Their deep understanding of blockchain technology, combined with their established expertise in the financial sector, gives us the confidence that they will respond effectively to these demands.”

On his part, Stefan Grasmann, Chief of Blockchain at Zühlke, described the partnership as a catalyst for the tokenized securities market: “We are excited to partner with 21X and contribute to the growth of the tokenized securities market. But this is much more than just a collaboration; it is a catalyst, allowing companies to effectively bridge the gap between traditional finance and the dynamic ecosystem of digital assets.”

These statements reflect a shared vision for the future of digital finance in Europe, where innovation and collaboration are keys to success.

What is the status of token regulation and its impact on the partnership?

The regulation of crypto-assets and tokenized securities is a crucial issue for the success of this initiative. Regulatory authorities in Europe are actively working to establish a clear and coherent legal framework for digital assets, aimed at protecting consumers and stimulating sector growth. New rules for crypto-assets, aimed at regulating their use and ensuring compliance of trading platforms, will play a crucial role in how 21X and Zühlke can develop their services.

By closely collaborating with regulators, both companies strive to ensure that their solutions meet the current standards while remaining flexible enough to adapt to future regulatory developments. This proactive compliance approach allows them to minimize risks and ensure broader and safer adoption of tokenized securities among financial institutions.

To learn more about the new rules for crypto-assets, check out this article.

What future developments are expected from this partnership?

Going forward, this partnership between 21X and Zühlke is expected to pave the way for numerous innovative developments in the field of tokenized securities trading. Among the planned initiatives are the expansion of proof of concept programs, the development of new features on the trading platform, and the creation of customized solutions for different market segments.

Moreover, both companies plan to collaborate on research and development initiatives to explore new applications of DLT technology in the financial sector. This innovative approach will keep them at the forefront of technological advancements and address the changing needs of financial institutions and investors.

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How does this alliance impact end consumers?

Although the partnership primarily focuses on financial institutions, end consumers indirectly benefit from this initiative. By facilitating the adoption of tokenized securities, consumers can access more diverse and innovative financial products, potentially offering better return opportunities and greater flexibility in their investments.

Moreover, the increased transparency and security offered by DLT technology help to bolster consumer confidence in digital financial products. This can lead to wider adoption of fintech services and better financial inclusion by providing accessible and secure solutions to a greater number of people.

What is the role of research and development in this partnership?

Research and development (R&D) play a central role in this partnership, allowing 21X and Zühlke to stay at the forefront of innovation in the fintech sector. By investing in R&D, both companies can explore new technologies, develop innovative solutions, and proactively address emerging market challenges.

Collaboration on R&D projects also allows for knowledge and expertise sharing, thus fostering a culture of continuous innovation. This leads to the creation of products and services that not only meet the current needs of financial institutions but also anticipate future market trends.

To learn more about innovations in the fintech sector, check out this article.

What are Zühlke’s competitive advantages in this collaboration?

Zühlke brings in-depth technical expertise and solid experience in the financial services and digital assets sector. Their thorough understanding of blockchain technology and financial infrastructures allows them to provide customized and effective solutions for the integration of tokenized securities.

As the official implementation partner, Zühlke plays a key role in the successful adoption of 21X’s solutions. Their ability to optimize existing systems, develop robust IT architectures, and manage order and accounting processes offers a significant competitive advantage. This ensures quick and effective adoption of new technologies by financial institutions, thus strengthening the positions of both 21X and Zühlke in the market.

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How do new rules for crypto-assets influence this partnership?

The new regulations regarding crypto-assets are crucial for structuring and securing the market for tokenized securities. These rules aim to protect consumers while stimulating growth in the fintech sector in Europe. By ensuring that their solutions comply with these regulations, 21X and Zühlke create a secure and compliant trading environment, thus facilitating the adoption of tokenized securities by financial institutions.

These regulations also help clarify the legal framework for new fintech initiatives, thus reducing uncertainties and risks associated with innovation. By being proactive in their regulatory approach, 21X and Zühlke position themselves as responsible and reliable leaders in the field of digital assets, strengthening the confidence of financial institutions and investors in their solutions.

To learn more about the new rules for crypto-assets, check out this article.

What are the benefits of tokenization of securities for the financial market?

The tokenization of securities presents numerous advantages for the financial market, transforming how assets are issued, exchanged, and managed. Among the main benefits are better liquidity of assets, reduced transaction costs, and increased transparency. Tokenization also allows for fractionalization of assets, making investments accessible to a larger number of investors with smaller amounts.

Moreover, the use of DLT technology guarantees increased security and complete traceability of transactions, thereby reducing the risks of fraud and errors. These advantages make tokenized securities particularly attractive to financial institutions and investors, facilitating wider and accelerated adoption of these new financial instruments.

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How does this initiative fit into the global fintech trend?

This collaboration between 21X and Zühlke aligns perfectly with the global trend in fintech, where technological innovation and the digitalization of financial services are at the heart of growth strategies. The tokenization of assets represents one of the most promising advancements, offering more efficient, transparent, and secure solutions for trading financial securities.

By adopting these emerging technologies, fintech companies like 21X and Zühlke contribute to redefining the standards of the financial sector, providing alternatives to traditional structures and enabling greater flexibility and accessibility for financial institutions and investors. This initiative also strengthens Europe’s position as a leader in the field of digital finance, attracting investments and stimulating innovation across the continent.

To learn more about current trends in fintech, check out this article.

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