EU Firms Demand Higher Tokenized Securities Cap Amid Regulatory Bottlenecks
A coalition of European financial and tokenization firms has sent a letter to EU lawmakers urging them to remove or significantly increase the proposed cap on tokenized financial instruments. The current cap is set at 100 billion euros, but the group argues that this would be too low for Europe's tokenization trajectory.
The signatories include Nasdaq, Boerse Stuttgart Group, Securitize, and the European Ethereum Institute, among others. They claim that some existing regional projects have already reached a scale of about 350 billion euros and plan additional growth.
The EU's proposed cap is based on the market value of instruments admitted to DLT infrastructure, rather than trading volumes. This makes the limit relatively small compared to global equity markets, which the group argues could lead to regulatory bottlenecks before the market has a chance to expand.