EU Finance Groups Urge Tokenized Securities Cap Hike to 500 Billion Euros

A coalition of European financial and tokenization groups has urged EU lawmakers to remove a proposed 100 billion euro cap on tokenized financial instruments or raise it to at least 500 billion euros.

The draft letter, dated September 7 and addressed to EU Council members and the European Parliament's Economic and Monetary Affairs Committee, argued that some existing European projects already reach 350 billion euros in scale and plan further growth. The proposed 100 billion euro ceiling would be insufficient, according to the groups.

The signatories include Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology. They contrasted the EU limits with the US, where a dominant settlement platform can tokenize US equities and other assets without volume caps, potentially covering as much as 150 trillion euros in assets.

The groups also highlighted that the proposed thresholds apply to the market value of financial instruments admitted to DLT infrastructure rather than their trading volume. This makes the proposed 100 billion euro cap relatively small compared with global equity markets.