Securitize Breaks New Ground: EU Greenlights Blockchain-Based Securities Exchange on Avalanche

In a major development for the future of digital finance, Securitize has secured approval from European regulators to launch a fully regulated tokenized trading and settlement system using blockchain infrastructure. The move positions Securitize as the first entity authorized to run a DLT-powered securities exchange under the European Union’s Distributed Ledger Technology (DLT) Pilot Regime—and it’s choosing Avalanche to power its operations.

From Fintech Middleman to Full-Fledged Market Operator

Until now, Securitize has been best known as a digital asset enabler, acting as a transfer agent and broker-dealer for tokenized securities, particularly in the U.S. market. But with this new license, granted by Spain’s Comisión Nacional del Mercado de Valores (CNMV), the company is evolving into a full-blown market infrastructure provider across all 27 EU member states.

This transformation is not symbolic. Securitize now holds the right to issue, trade, and settle tokenized financial instruments—from equities and bonds to funds and structured products—all on-chain. And crucially, this will be done within a regulated framework, providing the safeguards that institutions require.

Avalanche Selected for Institutional-Grade Performance

To make this vision real, Securitize has chosen Avalanche as the underlying blockchain. The rationale is technical and strategic: Avalanche’s architecture offers near-instant finality, high throughput, and customizable subnets, features that align with the compliance and performance demands of capital markets.

The use of Avalanche isn’t merely cosmetic—it reflects a fundamental shift in how market infrastructure can be built. Instead of retrofitting blockchains into legacy systems, Securitize is designing the platform from the ground up with blockchain-native capabilities, but under regulatory scrutiny. This ensures that investor protections, KYC/AML procedures, and auditability are baked into the system rather than added on.

Tokenization Enters Its Institutional Era

Tokenization is hardly a new concept, but regulatory inertia and infrastructure gaps have kept it on the sidelines. Securitize’s new status could change that. By integrating issuance, trading, and settlement into a single digital framework, it offers institutional players a practical, legally compliant path into tokenized finance.

Real-world assets (RWAs) like corporate bonds, private equity, and even real estate can now be fractionalized and traded in near real-time. The efficiency gains—from lower settlement risk to reduced administrative overhead—are potentially game-changing. But what makes this moment different is not just the tech; it’s the regulatory blessing that now accompanies it.

The pilot regime allows Securitize to experiment in a live environment without skirting the rules. It’s a sandbox with teeth: serious enough for institutional engagement, yet flexible enough to innovate.

A Cross-Atlantic Infrastructure with Global Ambitions

Securitize’s European expansion doesn’t exist in isolation. The firm is already active in the United States, having facilitated tokenized offerings under SEC-compliant structures. The ability to bridge compliant infrastructure across the Atlantic is no small feat. If successful, it could lay the foundation for the first global, interoperable system for tokenized securities.

That ambition is bolstered by the firm’s all-in-one platform approach. Unlike many blockchain ventures that require third-party coordination for issuance, custody, trading, and compliance, Securitize offers a vertically integrated stack. This could prove especially attractive for asset managers looking to tokenize their offerings without building custom infrastructure from scratch.

The Road Ahead: High Stakes and Real Timelines

According to internal timelines, the first tokenized instruments on this new European platform are expected to launch in early 2026. That gives Securitize just over a year to finalize the technical, legal, and operational frameworks needed to go live.

But success will hinge on more than deadlines. To achieve real impact, Securitize must:

• Convince major asset issuers—such as private equity firms, debt fund managers, and banks—to tokenize through its platform.
• Deliver enough liquidity to make the exchange viable for secondary trading.
• Prove that blockchain-based settlement is not just faster, but materially better in terms of cost, transparency, and security.

The broader market will be watching closely. Traditional exchanges, DeFi protocols, and regulators alike will be scrutinizing this launch as a bellwether for the viability of tokenized financial markets.

Conclusion: A Quiet Revolution in Plain Sight

With regulatory backing and a serious technological partner in Avalanche, Securitize has entered a rarefied position: not merely talking about the future of finance, but building it. If the rollout meets expectations, 2026 could mark a turning point—where securities trading takes a decisive step away from analog rails and embraces the digital, programmable, and borderless possibilities of blockchain.

In the ever-theoretical world of tokenization, Securitize now has a chance to make it real.