Credit Agricole's subsidiary CACEIS commits resources towards Kriptown to execute a Digital Ledger Technology (DLT) pilot program for stock exchange investments
EU DLT Pilot Regime: Four Companies Awarded Licenses, Two Operate Combined Trading and Settlement Systems
The European Union's DLT Pilot Regime, effective since March 2023, allows a single entity to operate both as a DLT Trading and Settlement System (DLT TSS). As of now, only four companies have been awarded any kind of EU DLT license. Among these, only two firms, 21X AG (Germany) and Axiology (Lithuania), hold combined DLT TSS licenses.
21X AG, based in Germany, holds an additional exemption that allows it to support retail investors directly under the regime. On the other hand, Axiology, based in Lithuania, operates a trading and settlement system built on a permissioned XRP Ledger. While it also holds a DLT TSS license, it does not have the exemption to support retail investors directly.
CSD Prague, authorised under the regime, is not specifically mentioned as having a combined DLT TSS license or the exemption for retail investor support.
Interestingly, a French tokenization firm, Lise (a subsidiary of Kriptown), is applying for a DLT license but is not yet authorized. Last year, BNP Paribas and BPI France invested in Kriptown, joining CACEIS as minority investors. Lise is expected to launch soon.
Under the DLT Pilot Regime, operators can experiment with DLT-based market infrastructures under national and ESMA supervision, offering regulatory exemptions for innovative market models including combined trading and settlement functions.
This regulatory environment is a significant step towards mainstream adoption of DLT technologies in the financial sector. The ability for a single entity to operate both as a DLT Trading and Settlement System offers efficiency and cost savings, which are crucial for the successful implementation of these technologies.
Sources:
- EU DLT Pilot Regime: Four companies awarded licenses
- 21X AG and Axiology granted EU DLT licenses
- CSD Prague joins EU DLT Pilot Regime
- Lise, Kriptown's subsidiary, applies for EU DLT license
- CACEIS invests in French tokenization firm Kriptown
[Image Credit: Flag grooversyd / 123rf, composite Ledger Insights]
- The analysis of the retail industry reveals that, despite the EU DLT Pilot Regime allowing 21X AG to support retail investors directly, Axiology does not hold such an exemption.
- The recent news in the blockchain sector indicates that Lise, a tokenization firm based in France, is seeking an EU DLT license to operate in the retail market.
- The technology landscape of the European finance industry has been impacted by the emergence of the DLT Pilot Regime, which enables operators to experiment with DLT-based market infrastructures for combined trading and settlement functions.
- The finance sector has witnessed significant changes with the implementation of the EU DLT Pilot Regime, particularly the entry of four companies, two of which, 21X AG and Axiology, operate combined trading and settlement systems on blockchain technology.
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