Securitize Secures EU Approval for Blockchain-Based Trading System

In a groundbreaking move, Securitize has obtained regulatory approval from the Spanish National Securities Market Commission (CNMV) to establish the European Union’s inaugural blockchain-based Trading and Settlement System (TSS). This system, underpinned by Avalanche’s infrastructure, marks a pivotal advancement in the realm of tokenized securities, with operations set to commence in early 2026.

Bridging Global Capital Markets

This authorization positions Securitize as the only firm globally that holds licenses to run regulated digital securities platforms in both the United States and the European Union. This dual authorization creates an unprecedented connection between the world’s two dominant capital markets, significantly enhancing the landscape for investors and issuers alike.

The achievement comes after an extensive four-year regulatory undertaking involving numerous bodies, including CNMV, ESMA, the Bank of Spain, and the European Central Bank. Securitize aims to launch its first issuance under the EU TSS framework using Avalanche technology by early 2026.

Unlocking Pan-European Digital Markets

Securitize’s endorsement by the Spanish regulator enables it to operate as a Trading and Settlement System pursuant to the EU’s DLT Pilot Regime. This regulatory sandbox is designed for testing distributed ledger technologies within financial market infrastructures, integrating the duties of a Multilateral Trading Facility and a Central Securities Depository into a singular digital platform. This innovative approach allows for seamless trading and settlement of tokenized assets across all 27 EU member states.

Previously, Securitize Europe Brokerage and Markets, SV SA, acquired its Investment Firm license in December 2024, which encompasses a range of services including order execution, custody, transfer-agent capabilities, and market infrastructure operations, providing a comprehensive passport across key EU jurisdictions such as Germany, France, and Italy.

Transformative Potential of Tokenization

The granted ERIR status by Spain enables Securitize to function as a digital transfer agent, facilitating end-to-end management of tokenized assets throughout their respective life cycles. CEO Carlos Domingo emphasized the significance of this milestone: “Tokenizing the world means removing the borders that have historically fragmented global capital markets,” asserting the company’s strategic advantage.

Avalanche Chosen for High Performance

Securitize has opted for Avalanche’s blockchain infrastructure due to its exceptional performance. The platform promises sub-second finality and the adaptability for tailored blockchains that meet specific regulatory standards. This ensures organizations can rely on consistent settlement times and compliance measures necessary for regulated trading environments, addressing long-standing issues surrounding blockchain efficiency in mainstream finance.

Notable global asset managers, including KKR and J.P. Morgan, have successfully utilized Avalanche technology for custom blockchain deployments aimed at launching tokenized funds, confirming Avalanche’s growing appeal among institutional players.

Institutional Momentum Boosting Avalanche

The recent Securitize licensing also reflects a swelling wave of institutional interest in the Avalanche ecosystem throughout 2024 and 2025. For instance, in September 2024, AgriFORCE announced plans for a significant capital raise aimed at securing AVAX tokens, establishing itself as a significant player within the blockchain landscape.

Further solidifying confidence in Avalanche, the Avalanche Treasury Co. unveiled plans for a $1 billion purchase of AVAX, thus signaling robust institutional backing. Major investors, including Pantera Capital and Galaxy Digital, showcased their faith in Avalanche’s long-term viability.

According to Anthony Scaramucci of SkyBridge Capital, this moment marks a transformative shift in finance, with asset tokenization expected to dominate the next decade.

The performance of Avalanche has already secured over $6.2 billion in staked assets, and with ETF filings from entities like VanEck and Grayscale, the blockchain’s institutional reputation continues to grow ahead of Securitize’s anticipated market launch in 2026.

Source: Securitize Wins EU Approval for Tokenized Trading System on Avalanche by Anas Hassan at Cryptonews.com

Source: finance.yahoo.com/news/securitize-wins-eu-approval-tokenized-142403949.html