EU Finance Groups Push for Higher Tokenization Limits

A coalition of European financial and tokenization groups has urged EU lawmakers to reconsider their proposal for a $116.3 billion cap on tokenized financial instruments.

The groups, which include Nasdaq and Boerse Stuttgart Group, have signed a draft letter calling for the removal of the proposed 100 billion euro cap or raising it to at least 500 billion euros.

This comes after the European Commission proposed increasing the current limit from 6 billion euros to as much as 100 billion euros in its Market Integration and Supervision Package, which includes revisions to the Distributed Ledger Technology (DLT) Pilot Regime.

The DLT Pilot Regime allows financial firms to test blockchain-based trading and settlement of assets such as stocks and bonds under exemptions from certain EU financial rules. However, the groups argue that the proposed cap would be insufficient given the scale of existing European projects, which already reach 350 billion euros in value.