EU taps industry to set standards for tokenized securities
The ECB, European Commission and ESMA are inviting applications to an industry-led group that will develop common technical and market standards for holding and settling tokenized securities across different DLT platforms and connecting them with existing financial systems. Applications are due Nov. 27, and work is expected to begin in January 2027, with initial standards targeted for early 2028. The institutions will observe the group’s work, which will support the Eurosystem’s Appia initiative. They warn that fragmentation could hinder tokenization and say the group may recommend ways to encourage adoption. The announcement follows the September launch of Pontes, a system for settling wholesale tokenized-asset transactions in central bank money.
