EU Groups Demand Removal of Cap on Tokenized Securities
A coalition of European market infrastructure and tokenization groups is urging EU lawmakers to reconsider a proposed cap on tokenized financial instruments. The group argues that the current ceiling of 100 billion euros is too low for Europe to scale blockchain-based trading and settlement.
In a draft letter dated September 7, the signatories ask that the proposed limit be either removed or lifted to at least 500 billion euros if lawmakers decide to keep any cap at all. The coalition points out that some existing European tokenized-finance initiatives already reach a scale of roughly 350 billion euros and are planning further growth.
The EU's proposed 100 billion euro cap is tied to the market value of financial instruments admitted to DLT infrastructure, which the group says makes it small compared to global equity markets. The coalition highlights that in the US, tokenization can proceed without comparable volume caps, with a dominant settlement platform enabled to tokenise US equities and other assets without volume limits.
The EU Commission's broader revision effort is part of its Market Integration and Supervision Package, which includes changes to the Distributed Ledger Technology (DLT) Pilot Regime. The regime enables financial firms to trial blockchain settlement for assets including stocks and bonds under specific conditions with regulatory exemptions meant to reduce friction while authorities observe how onchain systems perform.