- Stuttgart Stock Exchange and Nasdaq cooperate on EU trading in digital assets. Its processing is the responsibility of Seturion GmbH, the operator of the DLT system of the same name, through which Nasdaq trading takes place in the EU.
- The Seturion system supports public and restricted distributed ledger networks and processes central bank money as well as digital on-chain cash as soon as the necessary tools are available.
To start with, the collaboration in trading digital assets will focus on products that are linked to the Nasdaq and its outlets traded become. After a trade has been concluded, it is processed by Seturion GmbH.
Both companies emphasize that this is only the first step. The technical environment is designed to integrate additional asset classes and connect additional EU financial institutions.
The aim is a uniform technical framework that harmonizes digital securities processes across the EU.
Inconsistent processing in the EU
For historical reasons, the EU capital markets have heterogeneous post-trading structures. Different national systems, divergent legal requirements and complex processes make uniform, cross-border processes difficult.
The cooperation aims to eliminate these structural weaknesses. A common DLT-supported processing environment is intended to reduce risks, accelerate processes and standardize operational procedures.
The technical basis for this is fully compatible with MiFID II and the EU DLT pilot regime, which is applicable to regulated financial institutions.
Advantages for issuers and institutional customers
Issuers benefit from shorter settlement cycles, reduced operational complexity and greater transparency.
Institutional investors benefit from a clearly defined EU regulatory framework and the opportunity to purchase tokenized securities via established trading venues, while settlement takes place via a modern DLT operation.
The combination of trading at Nasdaq and its settlement via Seturion GmbH creates a coherent process that combines classic market structures with digital technology.
New unofficial EU framework
The cooperation fits in with a growing trend. Exchange operators are modernizing their market infrastructure to embed digital assets into existing trading environments.
Nasdaq is working on a technical gateway that will connect tokenized stocks with DLT networks from 2027.
And last but not least: The Stuttgart Stock Exchange is positioning Seturion GmbH as a DLT-supported settlement authority in the EU.
If it is possible to integrate further institutions, a network can emerge that significantly strengthens the competitiveness of the European Union internationally.
After all, the USA is on board as a partner in the form of Nasdaq, and that is a constellation that is rare these days and should therefore not be underestimated.
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