ABN AMRO Completes Pilot for Tokenized Trading on Ethereum with 21X

ABN AMRO, the third-largest bank in the Netherlands, has successfully completed a pilot project in collaboration with 21X, a Frankfurt-based digital asset exchange. This groundbreaking trial tested the use of on-chain settlement for tokenized securities, marking a significant step in the bank's ongoing exploration of digital assets.

The pilot, announced on January 30, involved listing a tokenized asset on 21X's on-chain market. As part of the test, ABN AMRO issued an ERC-3643 token on the Polygon Amoy Testnet. 21X paired this token with an ERC-20-based “E-Money Token,” although the specific asset was not disclosed.

Max Heinzle, CEO of 21X, emphasized the potential of blockchain technology to enhance efficiency and reduce costs in the trading system. "As part of our launch preparations, we are now in the process of onboarding institutional participants," he stated, highlighting the growing interest in the digital asset space.

ABN AMRO’s Growing Involvement in Digital Assets

ABN AMRO has been a pioneer among traditional banks in embracing digital assets. In the past, the bank has been involved in the issuance of tokenized green bonds, a move that aligns with its broader strategy of integrating blockchain technology into its financial offerings.

Martijn Siebrand, the Digital Assets Program Manager at ABN AMRO, explained that the bank is now working to expand its capabilities beyond the pilot phase. The next step is the integration of “secondary markt capabilities” through collaboration with the European Distributed Ledger Technology (DLT) trading and settlement system. This move aims to enhance liquidity and trading options for tokenized assets.

21X and the European Digital Asset Landscape

21X, which received an EU-regulated trading license in December 2024, is positioning itself to be a key player in the tokenized asset space. The exchange plans to launch its operations soon, though the exact timing remains uncertain. This launch will further strengthen Europe’s growing digital asset infrastructure.

Germany has been making strides in asset tokenization as well. In November 2024, the country’s central bank joined Project Guardian, an initiative led by Singapore’s Monetary Authority focused on developing digital asset standards and improving interoperability across markets.

A Glimpse into the Future of Tokenized Trading

The successful completion of ABN AMRO's pilot with 21X is a clear signal that the financial industry is moving closer to integrating tokenized assets into traditional markets. As blockchain technology continues to prove its value in reducing transaction costs and increasing efficiency, more banks and institutions are likely to follow suit in exploring decentralized finance (DeFi) solutions.

With its ongoing investments in digital assets and blockchain technology, ABN AMRO is positioning itself at the forefront of this transformation, paving the way for greater adoption of tokenized securities and decentralized trading systems in Europe.