Lithuania’s Axiology Gains DLT License For Digital Bond Trading

HomeNews* Axiology received a DLT Pilot Regime license to run a combined digital trading and settlement platform in Lithuania.

• The license allows exemptions from traditional rules like separating trading, settlement, and custody.
• The company aims to cut digital bond market costs by up to 40%, targeting small businesses and possible work with Lithuania’s finance ministry.
• Axiology will use a permissioned version of the XRP Ledger and instant settlement through stablecoins, but will not directly serve retail investors.
• The license process involved European regulators, and Axiology is now the fourth entity in Europe to receive such approval. Axiology, a company based in Lithuania, announced that it has secured a DLT (Distributed Ledger Technology) Pilot Regime license. This license enables Axiology to operate a single digital platform where trading, settlement, and custody services for digital securities can all take place together. The firm plans to go live in the fall of this year.

• Advertisement - As part of this license, Axiology can avoid some standard market rules, such as keeping trading and settlement services separate. The company says its new offering could deliver a 40% cost reduction for digital bond issuance. Previous market estimates from Cashlink suggested savings could go as high as 85% for middle and back office operations. This could allow small and midsize businesses to access capital markets more easily. Axiology also seeks to cooperate with Lithuania’s Ministry of Finance to offer government bonds in smaller amounts for retail buyers.

Unlike earlier platforms such as 21X, Axiology will not work directly with retail investors. The company’s CEO, Marius Jurgilas, explained that the platform will instead reach retail users through partners like crowdfunding sites, online brokers, and dealer networks. The system operates on a permissioned version of the XRP Ledger (XRPL), differing from other platforms using open, public blockchains. The platform will use stablecoins—digital tokens pegged to traditional currencies—for fast, automatic settlement of trades.

i>“Despite years of policy work, Europe’s capital markets remain costly, fragmented, and inaccessible to smaller participants,” said Jurgilas. “This licence allows us to operate the full capital market stack under a single, digital-native structure providing process synergies, cost savings and efficiency gains.”

The technology behind Axiology has already been tested by central banks in Georgia and Colombia, who are also clients of Ripple, the company behind the XRP Ledger. Axiology participated in the European Central Bank’s trials for digital settlement, utilizing the Bundesbank’s payment trigger to connect with the TARGET2 system. Jochen Metzger, former payments director at the Bundesbank, serves on the company’s board.

“The next phase of financial innovation will be driven by infrastructure and ambition to build markets that are inclusive, efficient, and digital-first. This license is a foundation stone in building that future,” said Metzger.

The Bank of Lithuania led the licensing process with input from the European Central Bank and the European Securities and Markets Authority (ESMA). ESMA has advised reviewing some restrictions under the DLT Pilot Regime, such as transaction size and timing limits. Since the law began in March 2023, only four companies—including Axiology, 21X, 360X, and CSD Prague—have received similar approval for various types of digital securities operations.

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