Axiology, a Lithuanian fintech company, has achieved a historic milestone by securing the first Distributed Ledger Technology (DLT) license in the Baltic-Nordic region. Led by former central banker Dr. Marius Jurgilas, this groundbreaking authorization under the EU’s DLT Pilot Regime makes Axiology only the second company in the entire European Union to receive this prestigious designation, positioning it to revolutionize digital bond markets across Europe.
Historic DLT License Achievement
The DLT Trading and Settlement System (DLT TSS) operator license was granted by the Bank of Lithuania in collaboration with the European Central Bank (ECB) and European Securities and Markets Authority (ESMA). This authorization enables Axiology to operate a fully integrated digital trading and settlement platform, combining traditionally separate functions under a single digital-native structure.
Key licensing details:
- License Type: DLT TSS Operator License under EU Regulation (EU) 2022/858
- Regional Distinction: First in Baltic-Nordic region, second in entire EU
- Launch Timeline: Platform operational from autumn 2025
- Regulatory Scope: EU-wide operational capabilities under single license
The license grants unprecedented regulatory exemptions, allowing the combination of trading and settlement functions that are typically required to be performed by separate entities, providing significant process synergies and efficiency gains.
EU DLT Pilot Regime Framework
The EU DLT Pilot Regime, introduced in March 2023, represents the European Union’s ambitious initiative to modernize financial market infrastructure through blockchain technology. This regulatory sandbox creates a controlled environment where select firms can build and test blockchain-based platforms with exemptions from existing financial regulations.
The regime targets specific financial instruments:
- Shares: Market capitalization below €500 million
- Bonds and debt securities: Issue size under €1 billion
- Collective investment units: Assets under management below €500 million
Revolutionary Technology Platform
Founded as a spin-off of the SUPER HOW? technology lab, Axiology has developed cutting-edge infrastructure leveraging blockchain technology to transform capital market operations.
Technical Infrastructure
- Blockchain Foundation: Built on permissioned XRP Ledger (XRPL)
- Integrated Operations: Combines trading, settlement, and custody in single platform
- Atomic Settlement: Uses stablecoins for instant settlement
- Cost Reduction: Claims 40% reduction in operational costs
- Modular Design: Built for seamless integration with existing systems
Proven Track Record
Axiology’s technology has demonstrated success through:
- Central Bank Trials: Used by National Bank of Georgia and Colombia’s Banco de la República
- ECB Participation: Involved in digital euro and government bond experiments
- Ripple Collaboration: Supported by consecutive Ripple Labs grants for CBDC initiatives
- Bundesbank Integration: Participated in wholesale DLT settlement trials
Target Markets and Strategic Vision
Axiology’s platform specifically targets underserved segments of the European financial ecosystem, focusing on democratizing access to capital markets.
Primary Audiences
Small and Medium Enterprises (SMEs): Cost-effective access to capital through digital bond issuance Retail Investors: Direct investment in previously inaccessible fixed-income instruments Financial Institutions: Infrastructure for broker-dealers and crowdfunding platforms Government Entities: Supporting sovereign bond issuance with enhanced accessibility
Digital Government Bonds Innovation
The company is in active discussions with Lithuania’s Ministry of Finance about issuing digital government bonds, including lower-denomination instruments designed for individuals. These could serve public finance goals including defense spending and ESG initiatives, enabling direct citizen participation in national financing.
Leadership Excellence and Industry Recognition
Dr. Marius Jurgilas brings exceptional credentials as CEO, having served over nine years at the Bank of Lithuania, including board membership. The leadership team includes Jochen Metzger, former Bundesbank Director General for payments and settlement systems, who serves as board member.
Recent achievements include:
- Mastercard Recognition: Overall Winner of Mastercard Lighthouse FINITIV Program 2025 Spring edition
- Investment Success: Secured €2 million funding from Baltic Sandbox Ventures, Coinvest Capital, and angel investors
- Industry Validation: Multiple awards recognizing innovative partnership readiness
Competitive Advantages and Market Position
Axiology holds a unique position as the only DLT license holder in the Baltic-Nordic region, offering complete trading, settlement, and custody services.
Key Differentiators
- Regional Pioneer: First DLT license in Baltic-Nordic region
- Full Integration: Complete capital market stack under single structure
- Retail Focus: Designed for retail investors, unlike institutional-only competitors
- Cost Efficiency: Up to 40% reduction compared to conventional systems
- Speed Enhancement: Atomic settlement eliminates traditional T+2 delays
Unlike competitors such as 21X, Axiology focuses on retail accessibility through partnerships with crowdfunding platforms and neo-brokers rather than direct retail engagement, while using permissioned blockchain infrastructure for enhanced security and regulatory compliance.
Regulatory Compliance and Standards
Axiology operates under comprehensive regulatory frameworks ensuring complete compliance:
- DLT TSS Operator License: Full permission for trading and settlement operations
- Investment Firm License: Category B authorization
- EU-wide Recognition: Single license enabling cross-border operations
- ISO 27001 Certification: Comprehensive cybersecurity and risk management
Future Expansion and Strategic Roadmap
Axiology has outlined ambitious growth plans building on its regulatory foundation:
Geographic Expansion
- Phase 1: Baltics and Poland launch (autumn 2025)
- Phase 2: Central and Eastern Europe expansion
- Phase 3: EU-wide operations
- Long-term: Global cross-border infrastructure
Financial Targets
- Asset Custody: €10 trillion by 2030
- Company Valuation: €5 billion by 2030
- Market Position: #1 SME/retail capital markets venue in EU
Market Impact and Industry Transformation
The platform’s potential extends beyond technology, representing a fundamental shift toward digital-first financial infrastructure in Europe.
Immediate Benefits
- SME Empowerment: Dramatically reduced capital raising costs
- Retail Democratization: Access to institutional-only investments
- Operational Efficiency: Elimination of multiple intermediaries
- Regulatory Innovation: Practical blockchain demonstration in regulated environments
Long-term Implications
Infrastructure Evolution: Catalyst for broader DLT adoption in European finance
Regulatory Development: Real-world data informing permanent frameworks
Market Integration: Foundation for integrated European capital markets
Global Leadership: EU positioned as blockchain finance leader
Investment Validation and Market Recognition
Recent funding success validates both technology and market opportunity:
- €2 million funding from strategic investors
- Baltic Sandbox Ventures: “Axiology has the ability, drive, and vision to lead this change”
- Coinvest Capital: Impressed by team expertise addressing complex challenges
- Multiple industry awards confirming business model validation
ESG Integration and Sustainable Finance
Axiology integrates Environmental, Social, and Governance principles throughout operations, aligning with UN Sustainable Development Goals:
- Environmental: Energy-efficient blockchain infrastructure supporting green economy
- Social: Financial inclusion and SME access democratization
- Governance: Transparency, ethical standards, and comprehensive risk management
Risk Management and Mitigation
Comprehensive approach to operational and strategic risks:
- Regulatory Oversight: Multiple supervision layers from EU and national authorities
- Technology Security: ISO 27001 certification and cybersecurity measures
- Market Diversification: Multiple asset classes and geographic markets
- Phased Implementation: Reducing execution risk through strategic rollout
Conclusion: Transforming European Capital Markets
Axiology’s achievement represents a watershed moment for European financial innovation. By successfully combining regulatory compliance with technological excellence, the company has positioned itself at the forefront of capital markets digital transformation.
The platform’s potential to achieve 40% cost reductions while improving accessibility and transparency could fundamentally reshape how European businesses raise capital and individuals invest. This represents democratization of financial markets that could drive significant economic growth across the region.
As Axiology prepares for its autumn 2025 launch, it stands poised to demonstrate how blockchain technology can enhance traditional financial markets, providing a blueprint for the future of European capital markets infrastructure. The success will likely influence regulatory frameworks across Europe and globally, establishing new standards for distributed ledger technology integration in regulated financial services.
For investors, issuers, and regulators, Axiology represents practical demonstration of how innovation and compliance can create more efficient, accessible, and transparent financial markets, marking the beginning of a new era in European finance.
