Credit Agricole's CACEIS ventures into Kriptown for a Digital Ledger Technology (DLT) pilot project in the stock exchange sector
In the rapidly evolving world of digital assets, the European Union's DLT Pilot Regime is making significant strides. Two companies, Axiology and BX Digital, are at the forefront of this development, having secured licenses to operate DLT Trading and Settlement Systems (DLT TSS).
Axiology: Pioneering EU-wide Digital Bond Markets
Axiology, based in the Baltic-Nordic region, has become the second EU company to secure a DLT TSS operator license under the EU Regulation (EU) 2022/858. The Bank of Lithuania, in collaboration with the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA), granted the license.
With this license, Axiology is set to operate a fully integrated digital trading and settlement platform for digital bond markets across Europe. The system supports digital issuance, trading, and settlement of financial instruments using regulated e-money tokens, offering a potential reduction of over 40% in bond lifecycle costs and eliminating traditional settlement delays. Operations are planned to commence in autumn 2025.
BX Digital: Switzerland's First DLT Trading Facility
BX Digital, based in Switzerland, has received a license from the Swiss financial regulator FINMA to operate a DLT trading facility, effective from May 14, 2025. Although Switzerland is not part of the EU, BX Digital is a significant player in the European financial landscape, being part of a major European stock exchange group and a pioneering DLT trading facility in its region.
BX Digital offers multilateral trading and settlement of DLT securities, with operations expected in Q4 2025. Participation is limited to regulated entities.
The DLT Pilot Regime: A Boost for Digital Securities
The DLT Pilot Regime, which supports the use of blockchain for trading and settlement of digital securities, has so far awarded licenses to only four companies since the supporting law came into force in early 2023. It allows a single entity to operate both as a DLT Trading and Settlement System (DLT TSS), with just two firms - Germany's 21X and Lithuania's Axiology - currently holding a combined DLT TSS license.
Kriptown: A Subsidiary on the Horizon
French tokenization firm Kriptown, with institutional backing from BNP Paribas and BPI France, is also making strides. Its subsidiary, Lise, is currently applying for a license under Europe's DLT Pilot Regime. Lise is expected to launch soon, further expanding the landscape of DLT-based trading and settlement systems in Europe.
As the EU's DLT Pilot Regime continues to evolve, it is clear that companies like Axiology, BX Digital, and Kriptown are leading the way in digital asset innovation, paving the path for a more efficient and secure digital financial future.
- The news of Axiology, a Baltic-Nordic company, securing a DLT TSS operator license, has brought insights into the potential for digital bond markets across Europe, as they aim to reduce bond lifecycle costs and eliminate traditional settlement delays.
- The analysis of the European Union's DLT Pilot Regime reveals its significant potential, as it has granted licenses to only four companies since its law came into force in early 2023, with Switzerland's BX Digital being one of them, marking a significant player in the European financial landscape.
- technology is playing a crucial role in the retail sector, as companies like Axiology and BX Digital are leveraging blockchain for digital trading and settlement systems, which could bring about a transformation in the way financial transactions are conducted.
- With Kriptown, a French tokenization firm backed by BNP Paribas and BPI France, set to launch its subsidiary Lise under the EU's DLT Pilot Regime, the retail finance industry is expected to witness further developments and growth in the realm of digital asset innovation.
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