Lithuanian fintech Axiology becomes the first in Northern and Eastern Europe to gain a DLT Pilot Regime license, paving the way for digital bond issuance and trading across EU capital markets.

Axiology Secures EU DLT License to Tackle Inefficiencies in Capital Markets

In a regulatory milestone for Europe’s financial system, Lithuanian fintech company Axiology has been authorised under the EU’s Distributed Ledger Technology (DLT) Pilot Regime to operate a fully integrated digital trading and settlement platform. This makes Axiology only the second company in the European Union to receive the designation—and the first in the Baltic and Nordic regions.

Led by former central banker Marius Jurgilas, the company is set to transform access to capital markets for small and mid-sized enterprises (SMEs) and retail investors by offering regulated, blockchain-based infrastructure. The license was issued by the Bank of Lithuania in collaboration with the European Central Bank (ECB) and the European Securities and Markets Authority (ESMA).

Breaking Down Barriers in Market Participation

Capital markets across Europe have long struggled with fragmentation, high costs, and procedural inefficiencies. These hurdles disproportionately affect smaller issuers and investors who lack the scale to navigate traditional post-trade systems. Axiology’s platform tackles these barriers by replacing legacy infrastructure with a digital framework that simplifies issuance, trading, and settlement processes.

Under its new license, Axiology can run a distributed ledger-based trading and settlement system—known as DLT TSS—that includes notary, custody, and embedded settlement functions. The platform is built on a permissioned version of the XRP Ledger (XRPL), a blockchain protocol widely recognised for its security and ability to handle high-volume financial transactions.

By eliminating intermediaries and automating post-trade workflows, Axiology reduces bond lifecycle costs by over 40%, while replacing two-day settlement delays with real-time execution.

From Regulatory Vision to Market Application

The DLT Pilot Regime, introduced by the European Union in 2023, is part of a broader effort to modernise financial market infrastructure. It provides select firms with legal exemptions to build and test blockchain-based platforms within a controlled framework. The initiative aims to generate practical insights that can inform a permanent regulatory model.

Axiology has already participated in several pilot projects alongside central banks. These include trials with the National Bank of Georgia and Colombia’s Banco de la República, as well as ECB-led experiments involving the digital euro and government bond issuance scenarios using Bundesbank’s trigger mechanism.

The June 2025 assessment by ESMA noted that the DLT Pilot Regime had successfully fostered innovation in SME financing and post-trade automation—objectives closely aligned with Axiology’s mission.

Empowering Retail and SME Bond Access

Axiology’s infrastructure enables financial firms to issue and trade digital bonds without building proprietary platforms. This capability is especially timely, given the surge in bond issuance across Europe. Mid-sized firms and sovereign issuers alike are tapping markets for capital, but current systems limit retail participation.

Jurgilas says the platform addresses this mismatch. Retail investors are seeking higher-yield instruments but often turn to high-risk alternatives like contracts for difference (CFDs), binary options, or volatile crypto assets. Axiology offers a regulated channel for accessing fixed-income products, allowing investors to participate in the bond market through compliant, small-ticket offerings.

The company is also in discussions with Lithuania’s Ministry of Finance about issuing digital government bonds. These could include lower-denomination instruments designed for individuals, potentially serving public finance goals including defence spending.

Toward a Unified Digital Market Infrastructure

Axiology’s broader goal is to create a seamless, pan-European infrastructure that bridges current policy intentions with practical market needs. According to Jochen Metzger, board member at Axiology and Global Head of Markets at NowCM, the next wave of financial innovation will depend on robust digital infrastructure that removes fragmentation and enhances efficiency.

The company's technology is modular and built for integration. It allows asset originators, broker-dealers, crowdfunding platforms, and digital brokerage firms to introduce new products without overhauling their systems. This flexibility is expected to attract partners across the European Economic Area as the company prepares for phased expansion starting in autumn 2025.