ABN AMRO, in partnership with 21X, has successfully completed a blockchain-based pilot that tested tokenized securities on Ethereum.
The trial demonstrated Ethereum’s capacity for improving financial systems by reducing settlement times and eliminating costly intermediaries.
The tokenized securities were settled using stablecoins, illustrating the practicality of blockchain for financial markets.
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In a bid to modernize financial markets, ABN AMRO, one of the largest banks in the Netherlands has announced the completion of a pilot program for on-chain settlement of tokenized securities on the Ethereum blockchain.
According to an on Thursday, the bank conducted the pilot in collaboration with 21X, a financial services company based in Frankfurt. The trial, which took place in January 2025, tested how blockchain could streamline financial transactions by replacing traditional settlement methods with smart contract-driven automation.
Inside the Trial: How It Worked
The pilot focused on issuing and settling tokenized securities using stablecoins, removing intermediaries, and reducing settlement times. As per the announcement, ABN AMRO created an ERC-3643 token, a blockchain-based standard designed for compliant security tokens, on the Polygon Amoy Testnet.
This digital asset was paired with an ERC-20 “E-Money Token” on 21X’s blockchain-powered trading platform.
While the companies did not disclose the specific asset tested, the underlying goal was clear: to evaluate how blockchain technology can replace the complex, multi-layered clearing and settlement systems that banks and financial institutions rely on today.
The successful completion of the test marks a new chapter for the planned launch of 21X’s digital asset exchange, where the token would be traded. The company already secured an EU-regulated trading license to operate its distributed ledger technology (DLT) trading and settlement system (DLT TSS) trading venue legally in the region.
Under the arrangement, the financial services company will serve as the trading venue for the tokenized securities while ABN AMRO will be the official custodian of the assets. According to the announcement, the bank had already proven itself worthy of the new responsibility through the successful completion of a joint proof of concept (PoC).
ABN AMRO and 21X to Expand Their Partnership
Max Heinzle, CEO of 21X, described the test as a step toward a more efficient, cost-effective trading environment. He stated:
“As part of our launch preparations we are now in the process of onboarding institutional participants. The PoC with ABN AMRO is a great example of raising awareness of the efficiency gains and cost savings that can be realized with our on-chain trading and settlement system.”
“As part of our launch preparations we are now in the process of onboarding institutional participants. The PoC with ABN AMRO is a great example of raising awareness of the efficiency gains and cost savings that can be realized with our on-chain trading and settlement system.”
Both companies plan to extend their partnership in the future. According to the announcement, the planned expansion will see the bank integrate the 21X’s upcoming exchange to enable ABN AMRO’s customers to access the digital assets listed on the platform.
The firm described the deal as a significant milestone for the two entities working together “to offer a more efficient and inclusive capital market ecosystem.”
Not the First
Meanwhile, this is not ABN AMRO’s first experiment with digital assets. The Dutch banking giant has been cautiously exploring tokenization and blockchain for years. In 2023, it made headlines for issuing a €5 million tokenized green bond on a public blockchain, a milestone that underscored its interest in digital finance.
The bank has also been involved in trials with the European Central Bank (ECB) exploring wholesale central bank digital currencies (). In these ECB-led experiments, ABN AMRO tested how a digital euro could be used to settle securities transactions on distributed ledger technology (DLT) networks.
However, by working with 21X, ABN AMRO appears to be taking another step toward integrating blockchain into mainstream financial services, signaling that tokenization is more than just a theoretical concept. It’s becoming a functional part of modern banking.
As for 21X, the company is a relatively new player in the digital asset space, but its ambitions are significant. The firm secured its DLT Pilot Regime license in December 2024, making it one of the first regulated digital asset exchanges in Europe.
Its platform is designed for fully on-chain trading, meaning tokenized stocks, bonds, and funds can be issued, traded, and settled without traditional financial intermediaries.
