21X Group Partners with Circle to Utilize New Arc Blockchain for Tokenized Securities

Financial infrastructure firm 21X Group has announced a collaboration with stablecoin issuer Circle, becoming a day-one launch partner for Circle's new Arc blockchain. The partnership will explore the use of Arc for the issuance, trading, and settlement of tokenized securities across European and U.S. markets, according to a statement released on October 1, 2026.

Strategic Collaboration

Under the agreement, 21X Group and Circle will work to build use cases for issuers and brokers of tokenized securities on Arc, an open, EVM-compatible Layer-1 blockchain designed for financial markets. A key feature of the network is its use of stablecoins for gas fees, starting with Circle's own USDC.

The two companies have already successfully tested the trading of tokenized securities on the Arc network using 21X AG’s European infrastructure. The test demonstrated atomic settlement against USDC in under one second, a significant reduction in settlement time and principal risk compared to traditional systems.

"Arc is purpose-built for financial applications and offers a natural environment for stablecoins and tokenized securities operations," said Max Heinzle, Founder and CEO of 21X Group. "Exploring 21X LLC’s anticipated trading and settlement capabilities on Arc will allow us to build on what we have already established in Europe."

U.S. Expansion and Market Impact

This partnership aligns with 21X Group's planned expansion into the United States, the world's largest capital market. The company's U.S. subsidiary, 21X LLC, is currently seeking regulatory approvals to establish a broker-dealer that will operate an alternative trading system (ATS) for tokenized securities.

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For investors and asset managers, the collaboration aims to provide a regulated pathway to list tokenized securities on an open blockchain network and trade them against a stablecoin like USDC. This could enhance liquidity and efficiency for digital assets.

"As we build out 21X LLC’s US operation, our focus is on creating regulated institutional access to tokenized securities across open blockchain networks," stated Ray Tierney, CEO of 21X LLC. "Joining the Arc ecosystem from day one is an important step in that strategy."

Background and Context

21X Group's European arm, 21X AG, already operates the first regulated distributed ledger technology trading and settlement system (DLT TSS) in the European Union, under the oversight of Germany's BaFin and the European Securities and Markets Authority (ESMA). Its European venue currently supports USDC as a settlement currency.

Circle's Arc blockchain is positioned as an enterprise-grade network for financial applications. By using USDC for transaction fees, it aims to provide a stable and predictable cost environment for financial institutions, a contrast to the volatile gas fees often seen on other public blockchains.