Key Highlights
- Securitize received a major approval from Spain’s CNMV to operate a fully regulated trading and settlement system for tokenized securities across the EU
- The approval will allow the company to offer a service for the issuance, trading, and settlement of tokenized assets in a single transaction
- The platform will be built on the Avalanche blockchain to use its institutional-grade compliance
On November 26, Spain’s National Securities Market Commission (CNMV) granted approval to Securitize to operate a fully regulated trading and settlement system for tokenized securities across the European Union.
The platform will be built on the Avalanche blockchain due to its ability to process transactions in a faster manner while keeping fees low.
According to the official announcement, this approval was granted under the EU’s specialized Distributed Ledger Technology (DLT) Pilot Regime.
This license will make Securitize the first and only company to be licensed to operate such market infrastructure in both the United States and the European Union.
Securitize Expands Its Operations in Europe
Amid the boom in the tokenized economy, this is not the first time that Securitize got approval. In December 2024, the company secured an Investment Firm license from the same Spanish regulator, which was later extended to major countries like Germany, France, and Italy. This license allows it to execute orders and provide custody services.
The new approval from CNMV will place the company at a higher level of a market infrastructure operator, similar to a stock exchange or a clearinghouse.
In simple words, this approval will allow the company to offer a complete service for security tokens, from the moment they are issued to the moment they are traded and finally settled. This entire process will take place on a single transaction.
According to the report, the first tokenized assets on this new EU platform are expected in early 2026.
Why the Avalanche Blockchain Was the Chosen Foundation
In the latest post on X, Avalanche has revealed its selection by the company to launch a pan-European Trading & Settlement System. The reason behind its selection is Avalanche’s features. Its speed is critical for reducing settlement risk.
Avalanche is also popular for its permissioned subnets. These are customizable blockchain environments that can be made private and are designed to meet regulatory compliance requirements. This will provide the privacy that financial institutions need, while still operating on a public blockchain that ensures transparency.
Its ecosystem is rapidly growing, with over $1 billion in real-world assets already tokenized on Avalanche, including an expansion of BlackRock’s BUIDL fund onto the network. At the time of writing, BUIDL holds over $2.05 billion in total value locked.
The concept of tokenization is rapidly becoming popular. Securitize has been operating since 2023 in Europe. The company tokenized a €150 million Spanish real estate investment trust (REIT) under the same EU pilot program, which was the first-ever tokenization of equity in Europe.
The DLT Pilot Regime came into effect in March 2023. It creates a supportive regulatory sandbox for companies to test blockchain-based financial services.
Securitize is not alone in the race of tokenized securities in Europe, as competitors like Germany’s Boerse Stuttgart have also launched similar settlement platforms. Furthermore, Switzerland’s Taurus is also working in this direction.
According to a Boston Consulting Group report, the total value of tokenized assets could reach $18 trillion by 2033.
Securitize Plans to Become a Public Company
Just weeks before this EU approval, the company announced a deal to become a publicly traded company through a major merger with a special purpose acquisition company (SPAC) called Cantor Equity Partners II. This transaction values Securitize at $1.25 billion.
“Securitize has tokenized more than $4 billion in assets through partnerships with leading asset managers, including Apollo, BlackRock, Hamilton Lane, KKR, and VanEck. The firm’s launch of KKR’s Health Care Strategic Growth Fund II in 2022 marked the first time a major global investment manager tokenized a fund on-chain, while BlackRock’s BUIDL, tokenized by Securitize in 2024, became the largest tokenized real-world asset in the world,” stated in the press release.
Source: https://www.cryptonewsz.com/securitize-eu-approval-tokenized-platform/
