ECB Links Europe’s T+1 Securities Transition to a Broader Settlement Overhaul
European Central Bank officials discussed plans for Europe to move to T+1 securities settlement in October 2027, alongside longer-term experiments with tokenized settlement infrastructure. T+1 would shorten the time to settle eligible trades, reducing some exposures but leaving firms less time to resolve errors, arrange funding and coordinate across jurisdictions. Tokenization is a separate infrastructure question and is not required for the deadline or evidence that blockchain will replace existing systems. Banks and other regulated intermediaries would retain key responsibilities, while tokenized records must still connect to enforceable financial rights. Industry testing, funding arrangements and official updates will show whether the transition reduces settlement failures and costs without creating uncontrolled risks.
