“In the dynamic landscape of fund management, staying ahead of the curve is crucial for success and asset tokenisation holds tremendous potential for transforming the fund administration and management landscape,” stated Peter Hughes, CEO of Apex Group, announcing the partnership with fintech firm 21X. Photos: Apex Group, Shutterstock. Montage: Maison Moderne

“In the dynamic landscape of fund management, staying ahead of the curve is crucial for success and asset tokenisation holds tremendous potential for transforming the fund administration and management landscape,” stated Peter Hughes, CEO of Apex Group, announcing the partnership with fintech firm 21X. Photos: Apex Group, Shutterstock. Montage: Maison Moderne

A partnership between 21X and Apex Group aims to transform capital markets by offering a DLT-enabled exchange for tokenised securities, with licensing from the European Securities and Markets Authority, the EU market regulator, pending.

21X, a fintech company based in Frankfurt, and Apex Group, a global financial services provider regulated by the Luxembourg Financial Sector Supervisory Commission (CSSF), have forged a strategic partnership aimed at transforming capital markets through the introduction of a distributed ledger technology (DLT) exchange for trading and settling tokenised securities. This collaboration, on Tuesday 24 September 2024, marked a significant advancement in the development of the tokenised securities market and established 21X as the European exchange of choice for Apex Group in listing its clients’ tokenised securities, according to the press statement.

The partnership will allow both companies to leverage their strengths and provide a comprehensive end-to-end service for asset managers, financial institutions, brokers, and distributors interested in listing tokenised securities on 21X’s DLT market. The exchange is in the final stages of obtaining a licence to operate as the first and only DLT-enabled exchange and settlement system regulated by the European Securities and Markets Authority (Esma), said the communiqué. Details regarding the initial funds to be listed on 21X are expected to be revealed shortly after the licence approval.

Max Heinzle, founder and CEO of 21X, expressed optimism about the partnership, stating that it represented a significant milestone in launching the first fully regulated DLT-based exchange and settlement system. He highlighted Apex Group’s commitment to listing tokenised securities on 21X as a historic step for capital markets globally.

Apex Group’s founder and CEO, Peter Hughes, emphasised the importance of innovation in the fund management sector, noting that asset tokenisation holds substantial potential to reshape fund administration and management. He affirmed that the collaboration with 21X aligned with the company’s strategy to enhance its tokenised asset capabilities.

Apex Group manages more than $3trn of assets and has positioned itself as a leader in digital asset services, integrating blockchain technology into its fund operations, transfer agency and custody services. The company has recognised the growing demand for DLT-based investment products, stating that tokenised assets would play an increasingly pivotal role in its business model.

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