Dutch bank ABN AMRO has conducted an onchain trade of tokenized assets against stablecoins alongside Germany-regulated 21X.

The two firms completed a joint proof of concept (PoC) for the issuing of a token on the Polygon Amoy Testnet, which was listed as a trading pair with an e-money token, according to an emailed announcement on Thursday.

“The deployment of 21X’s on-chain order book smart contract enabled trading between tokenized cash and the tokenized asset in one single transaction,” the firms said.

Frankfurt-based 21X, which is building a blockchain-based exchange to list and trade tokenized securities, won approval from German regulator BaFin in December.

Tokenization – the representation of real-world assets such as stocks or bonds as tokens on a blockchain – has become an area of interest among traditional financial (TradFi) firms in recent years.

Blockchain-native companies such as 21X securing regulatory approval in major financial centers means TradFi companies can enter partnerships with them to advance their tokenization plans with greater confidence.