21X AG and LayerZero Complete Institutional Blockchain Trading Pilot
The two firms ran a live order book on a private deployment of Zero, achieving up to 45x performance gains with no offchain matching.
LayerZero and 21X AG, Europe's first fully regulated distributed ledger technology trading and settlement venue, have completed a joint pilot demonstrating institutional-grade onchain trading capabilities, the companies announced.
The pilot ran 21X AG's live central limit order book on a private-permissioned instance of Zero, LayerZero's blockchain infrastructure. The setup delivered performance improvements of up to 45 times compared to previous benchmarks, while eliminating the need for any offchain matching — a technical distinction that carries significant compliance and transparency implications for regulated markets.
Read more Windward Bio Debuts on Nasdaq, Shares Jump 68% at Close →
The achievement is notable given the persistent tension between blockchain performance constraints and the speed demands of institutional trading venues. By operating within a private-permissioned environment, the pilot avoided the latency and throughput limitations typically associated with public blockchain networks, suggesting a potential pathway for regulated financial institutions seeking to migrate order-matching infrastructure onchain without sacrificing execution quality.
21X AG holds a regulatory standing that positions it as a benchmark for how European capital markets regulators may evaluate DLT-based trading venues going forward. The success of this pilot could inform broader adoption of similar architectures across the continent as the EU's DLT Pilot Regime continues to mature and attract participants.
The companies did not disclose a timeline for moving beyond the pilot phase or specify which asset classes were traded during the test. Continue reading at Cryptocurrency.
