Avalanche Powers Securitize New EU Wide Trading and Settlement Platform

Securitize is launching a pan-European Trading and Settlement System on Avalanche. The platform is approved under the EU’s DLT Pilot Regime, and it will allow trading and settlement of tokenized securities across all 27 EU member states in one digital venue. It is the only regulated system of its kind operating in both the United States and the European Union.

The development brings regulated digital markets into one framework. It aligns trading, settlement, and asset servicing on a blockchain network that can meet institutional standards. It also connects two major financial regions that have historically operated with separate rules and market structures.

What Is Securitize Building in Europe?

Securitize is creating a fully regulated Trading and Settlement System, often called a TSS in the EU. A TSS combines two roles that normally exist in separate institutions:

• A Multilateral Trading Facility (MTF), which is similar to a traditional venue where securities are traded.
• A Central Securities Depository (CSD), which handles settlement, custody, and lifecycle events for securities.

Under the EU’s DLT Pilot Regime, both functions can operate inside one digital environment. The regime acts as a controlled testing ground for blockchain-based financial market infrastructure. Regulators supervise these systems while allowing them to test how distributed ledger technology works at scale.

Securitize’s system will let tokenized stocks, bonds, and other financial instruments trade and settle within seconds on Avalanche. The setup removes several layers of legacy intermediaries and places trading and settlement within one controlled digital workflow.

This authorization follows four years of cooperation with regulators including the CNMV in Spain, the European Securities and Markets Authority, the Bank of Spain, and the European Central Bank.

Why Was Avalanche Chosen for the TSS?

Avalanche is a public blockchain known for sub-second settlement and predictable performance. These traits matter when dealing with regulated digital securities, where accuracy and timing are central. Institutions need a chain that offers:

• Fast finality
• Reliable throughput
• Configurable networks for specific regulatory needs
• Transparent and auditable onchain records

Avalanche supports custom subnets, which allow regulated entities to create specialized blockchain environments. These environments can enforce compliance rules such as permissioning and identity checks. This helps Securitize meet regulatory requirements without moving away from an open and proven blockchain architecture.

Real-world examples of institutional use on Avalanche include tokenized funds and bond issuances from firms such as KKR and institutions in the Asia-Pacific region. 

Ava Labs President John Wu described Avalanche as designed for the performance and predictability required for tokenizing assets. These are the features Securitize expects to rely on when the first issuance under the new TSS arrives in 2026.

“We’re proud to support Securitize as they launch the first pan-European TSS powered by Avalanche,” said Ava Labs President John Wu. "This is a major milestone for Europe’s tokenized markets and shows how institutional-grade blockchain infrastructure can unlock new levels of speed, transparency, and efficiency for issuers and investors.”

How the Authorization Expands Securitize’s Reach?

Securitize now holds regulated digital-securities licenses on both sides of the Atlantic.

In the United States, Securitize already operates as:

• A registered broker-dealer
• A digital transfer agent
• A fund administrator
• An alternative trading system

In the European Union, Securitize Europe Brokerage & Markets, SV SA, holds two major authorizations:

1. Investment Firm License (received in December 2024)
   This covers order execution, custody, transfer-agent services, and operation of market-infrastructure systems. It includes ERIR authorization in Spain, which gives Securitize permission to act as a digital transfer agent for tokenized securities.
2. Trading and Settlement System Authorization
   This new approval allows the company to operate the market infrastructure itself. It combines trading and settlement within one digital platform under the DLT Pilot Regime.

The Investment Firm license has been passported across several EU jurisdictions, including Germany, France, Italy, Luxembourg, and the Netherlands. This means Securitize can serve issuers and investors across most of Europe without filing new applications in each country.

Now, with the TSS license, the firm can issue, trade, settle, and service tokenized securities across the entire region. The system links directly to Securitize’s infrastructure in the United States, creating a regulated channel between the world’s two largest capital markets.

How Will the Pan-European System Work?

The system will allow issuers to create tokenized instruments such as stocks, bonds, and funds. These assets can then trade and settle in seconds on Avalanche. Issuers will be able to use one regulated platform for:

• Issuance
• Secondary trading
• Settlement
• Custody
• Transfer-agent services
• Lifecycle management

The system supports end-to-end workflows for the entire asset lifecycle. This includes corporate actions, investor records, and regulatory reporting.

Key capabilities of the new system:

• Unified trading and settlement
  Trading and settlement happen in one digital venue, reducing operational delays.
• Tokenization of real-world assets (RWAs)
  Tokenized government and corporate bonds, tokenized funds, and other instruments can run on the platform.
• Regulated interoperability between US and EU markets
  Securitize becomes the only firm licensed to run regulated digital-securities infrastructure in both regions.
• Passporting across the EU
  A single authorization covers all 27 member states.
• Institutional-grade blockchain foundation
  Avalanche’s architecture provides predictability, speed, and transparent transaction records.

This structure resembles the direction both the EU and US have taken in recent digital-asset policy, where tokenized instruments are increasingly recognized within traditional financial frameworks.

Why Does This Matters for Digital Securities?

For years, tokenized assets have been discussed in theory but limited in practice because few institutions had regulatory approval on both sides of major financial borders. Securitize has now reached that point.

Some of the previous instances are:

• Tokenized government bond pilots in Hong Kong
• On-chain money market funds issued by firms in Europe and the US
• Experiments with onchain settlement by banks in France, Germany, and Singapore

These developments share a common theme: regulators want controlled environments where digital instruments can operate under existing financial laws.

The EU’s DLT Pilot Regime is part of that process. Securitize’s approval under this regime gives the company a unique position in the current digital-securities landscape.

Conclusion

Securitize is launching a regulated pan-European Trading and Settlement System powered by Avalanche. It is the only platform authorized to operate regulated digital-securities infrastructure across both the United States and the European Union. The system combines trading and settlement within a single digital venue, offers fully regulated asset servicing, and uses Avalanche’s predictable and high-performance blockchain environment. Its first issuance is expected in 2026.

Resources

1. Press release by Securitize: Securitize Wins Full EU Regulatory Approval and Selects Avalanche for Initial Deployment of European Trading & Settlement System

2. Avalanche on X: Announcements on November 27

3. Press release from Hong Kong Monetary Authority: HKMA announces the new phase of Project Ensemble to support real-value transactions in tokenised deposits and digital assets

4. Report by Fintech Switzerland: Singapore and Germany Regulators Team Up on Tokenised Cross-Border Settlement

5. Report by Markets(.)com: Amundi Launches Tokenized Euro Money Market Fund on Ethereum