Nasdaq is partnering with Boerse Stuttgart Group's Seturion, a tokenized settlement platform, to connect its European trading venues. This collaboration aims to facilitate the settlement of tokenized securities using distributed ledger technology.
The initial focus will be on structured products, with the goal of accelerating settlement times for tokenized assets within European capital markets. Seturion supports various asset classes on both public and private distributed ledger networks, enabling transactions settled with central bank money or on-chain cash. The platform is designed for broader access by financial institutions across Europe.
Under this agreement, Nasdaq will link its European trading venues to Seturion, allowing tokenized securities traded on these markets to be settled via the platform. The companies plan to expand participation to more issuers, brokers, and financial institutions over time.
This initiative seeks to address fragmentation in Europe's post-trade infrastructure, where multiple national systems with differing rules currently handle securities settlement. By employing distributed ledger technology, a shared platform could significantly reduce settlement times and operational complexity across European markets.
The system is designed to operate within existing European regulatory frameworks, including MiFID II and the DLT Pilot Regime, which permit financial institutions to test distributed ledger technology for trading and settling tokenized securities.
