Securitize is enabling the launch of a pan-European trading and settlement system using Avalanche. The platform, authorized under the EU’s DLT Pilot Regime, will allow for real-time tokenized security trading and settlement across all 27 EU member states within one digital environment. This marks the first regulated system in both the US and Europe, combining multilateral trading facility (MTF) functionality with central securities depository (CSD) services.
Securitize’s system streamlines asset lifecycle processes for tokenized stocks, bonds, and other instruments. It removes traditional intermediaries and creates a single digital workflow for trading and settlement on the Avalanche blockchain. The platform utilizes subnets to allow for customized regulatory environments, ensuring compliance while maintaining an open blockchain architecture.
This milestone comes after years of collaboration with various EU regulators including the CNMV in Spain, ESMA, Bank of Spain, and the European Central Bank. This authorization grants Securitize a unique position by allowing it to offer regulated digital securities across both the US and EU markets.
**Why Avalanche?**
Avalanche’s sub-second settlement speed and predictable performance make it ideal for managing regulated digital securities where accuracy and timeliness are crucial. Institutions require a reliable blockchain foundation, and Avalanche delivers this through configurable networks for specific regulatory needs, transparent on-chain records, and secure subnets.
Ava Labs President John Wu expressed his enthusiasm about the project, stating that Securitize’s system aligns with institutional-grade blockchain infrastructure requirements. He believes it will unlock new levels of speed, transparency, and efficiency for issuers and investors.
**How It Works: **
The system enables tokenized assets such as stocks, bonds, and funds to trade and settle instantly on the platform.
* Issuers can create tokenized instruments. 27 EU member states will have access to this regulated environment. 50% of the world’s population lives in these countries. 1/3 of the global financial markets are located here.
* The system connects issuers, investors, and market participants across the US and EU through a single regulated platform. It provides end-to-end support for all asset lifecycle processes from issuance to settlement, custody, and reporting.
* Key features include: * unified trading and settlement in one digital venue; * tokenized government bonds, funds, and other instruments are supported; * regulated interoperability between US and EU markets; and * passporting across the EU with a single authorization for all 27 member states. **
**Benefits and Impact:**
This development marks a significant step towards wider adoption of tokenized securities in Europe.
It fosters innovation, increases market accessibility, and facilitates secure cross-border transactions between traditional financial markets.
The EU’s DLT Pilot Regime is paving the way for controlled environments where digital instruments can operate under existing financial laws. Securitize’s approval sets a precedent for future developments within this landscape.