Investre and 21X to list native fund tokens on DLT exchange

Investre and 21X have agreed to allow investment funds issued directly as tokens on Investre’s distributed ledger infrastructure to be listed and traded on 21X’s regulated on-chain exchange in Frankfurt. Trades will use on-chain order matching and atomic settlement so ownership and settlement are recorded and executed on the ledger.

Under the arrangement, Investre will handle issuance and servicing in Luxembourg while 21X will operate listing and secondary trading in Frankfurt. Investre is authorised by Luxembourg’s Commission de Surveillance du Secteur Financier to act as a Control Agent under the country’s Blockchain IV Law. 21X operates the exchange licensed as a DLT Trading and Settlement System under the EU’s DLT Pilot Regime.

The partners say the arrangement applies to actively managed UCITS funds. Fund managers can make units tradable intraday on a regulated venue without creating a separate ETF wrapper, appointing authorised participants or running a parallel product. The legal form of the fund remains unchanged while its units are represented and exchanged as tokens on the ledger.

Georges Bock, CEO and co-founder of Investre, said natively issued funds need to be tradable on regulated markets to deliver the benefits of tokenization and described the partnership with 21X as closing that gap.

Ralf Wandmacher, chief financial officer of 21X, highlighted that native tokens carry the economic rights to the underlying assets and noted the combination of an on-chain funds registry with smart contract-based trading on 21X’s platform.

The agreement leverages the EU DLT Pilot Regime and Luxembourg’s Blockchain IV Law, frameworks that define roles and permissions for tokenised financial instruments and for trading and settlement systems using distributed ledger technology.