Chainlink Oracles Power Real-Time Market Data for EU-Regulated Exchange 21X on Polygon

• Chainlink’s collaboration with 21x allows investors to access verified price and bid-ask data, with Black Manta Capital’s UBS USD Money Market Fund.
• Future phases aim to expand beyond post-trade reporting to include pre-trade data and broader asset classes, enhancing transparency, collateral utility, etc.

Chainlink has now extended its footprint into the EU’s regulated financial markets with a new relationship with 21X, a tokenized securities digital exchange licensed in the EU. The integration enables the release of real-time post-trading information on securities listed on 21X, into the Polygon blockchain.

Chainlink, 21X & Polygon Come Together

The above-mentioned partnership is the first instance of an EU-regulated trading facility of digital securities to link its live data to a blockchain infrastructural framework via Chainlink. With the Chainlink Runtime Environment (CRE), investors and institutions are now able to access verified information, including last traded prices and current bid-ask spreads of securities on 21X.

21X is subject to the regime of the Distributed Ledger Technology (DLT) of the European Union and is controlled by the financial regulator of Germany, BaFin. The platform presents tokenized equities, bonds, and funds and allows digital assets, which are similar to conventional securities, to travel through blockchain-based markets.

With the publication of trade data on-chain, the assets have the potential to be utilized in new ways, including collateral as part of lending protocols or as participants in decentralized secondary trading. The first security to make use of the integration is a note issued by Black Manta Capital Partners. The instrument, which is called USMO, is supported by the UBS USD Money Market Fund and is currently making its data directly accessible on-chain via Chainlink, as mentioned in our previous story.

According to Max Heinzle, Chief Executive Officer of 21X, the implementation of Chainlink can enable the platform to offer institutions the confidence they require to engage in blockchain-based markets. 

What’s Next in the Partnership?

Chainlink’s role as an oracle provider on blockchain is growing rapidly as more non-digital assets are tokenized, as reported by CNF. Its infrastructure has been made to provide dependable information in the off-chain setting into smart contracts in such a way that applications like lending, trading, and settlement can obtain verifiable data.

The future phases of the collaboration, according to the companies, will not be limited to post-trade reporting. Their plans include making pre-trade market information available on-chain, adding analytical value, and extending the support to other types of assets. These actions are supposed to enhance access to regulated market information in the blockchain system and assist in wider institutional utilization.

The collaboration makes 21X one of the prime testing grounds of the way regulated securities are able to interface with a decentralized finance infrastructure without falling outside the scrutiny of European regulators. As Chainlink out it, “Ultimately, this integration represents a major step towards building a more transparent, composable, and efficient financial system and opens the floodgates for institutional capital to flow onchain.”