Broke down what it means for 21X to hold both a DLT-TSS and an MTF license this week, because the docs mention both without explaining why having both matters more than having one.
The surprising part: neither license closes the regulated cycle on its own.
21X became the first EU entity to hold a DLT-TSS license under the DLT Pilot Regime — announced in 2024. The DLT-TSS (Distributed Ledger Technology-based Trading and Settlement System) license is specifically designed for entities doing both trading and settlement on-chain under EU law.
Four things each license combination enables:
MTF alone: trade on a regulated venue, but settlement must still go through a traditional CSD. On-chain execution, off-chain settlement.
DLT-TSS alone: settlement on-chain under the DLT Pilot Regime. But no regulated trading venue — you still need a venue partner.
MTF + DLT-TSS (21X): the full cycle runs on-chain. Trade on the venue, settle on the ledger, record on the DLT. No CSD required.
The milestone: 21X became the first EU entity to hold both. DuskEVM is integrating with 21X.
Most discussions focus on the technology. The licensing architecture is what actually makes the legal structure possible — without the DLT-TSS, on-chain settlement is experimental. With it, it's legally recognised.
Does having both licenses also create regulatory concentration risk — or does the DLT Pilot Regime have oversight mechanisms specifically designed for combined trading-settlement entities? @Dusk
$DUSK #dusk
The surprising part: neither license closes the regulated cycle on its own.
21X became the first EU entity to hold a DLT-TSS license under the DLT Pilot Regime — announced in 2024. The DLT-TSS (Distributed Ledger Technology-based Trading and Settlement System) license is specifically designed for entities doing both trading and settlement on-chain under EU law.
Four things each license combination enables:
MTF alone: trade on a regulated venue, but settlement must still go through a traditional CSD. On-chain execution, off-chain settlement.
DLT-TSS alone: settlement on-chain under the DLT Pilot Regime. But no regulated trading venue — you still need a venue partner.
MTF + DLT-TSS (21X): the full cycle runs on-chain. Trade on the venue, settle on the ledger, record on the DLT. No CSD required.
The milestone: 21X became the first EU entity to hold both. DuskEVM is integrating with 21X.
Most discussions focus on the technology. The licensing architecture is what actually makes the legal structure possible — without the DLT-TSS, on-chain settlement is experimental. With it, it's legally recognised.
Does having both licenses also create regulatory concentration risk — or does the DLT Pilot Regime have oversight mechanisms specifically designed for combined trading-settlement entities? @Dusk
$DUSK #dusk
