Europe Calls for Industry Experts to Write the Rules for Tokenized Securities

Three major EU bodies, the European Central Bank, the European Commission and the European Securities and Markets Authority, are looking for members to join a new industry-led group that will draft shared standards for holding and settling tokenized securities. Industry associations, global institutions, private companies and fintech firms can apply to the European Tokenisation Standards Group until November 27. Work is set to begin in January 2027, and the three institutions will take part only as observers.

What the Tokenization Standards Will Cover

The group will build technical and market standards so firms can hold and settle tokenized securities across different distributed ledger platforms, while keeping those platforms compatible with existing financial systems. An initial set is targeted for early 2028. The standards will back Appia, the Eurosystem’s plan for a blueprint of Europe’s tokenized financial markets. Officials warned that a patchwork of approaches could limit the benefits of tokenization, and the group may also suggest ways for authorities to encourage firms to adopt its work.

Eurosystem Pontes Settlement System

This effort follows the Eurosystem’s September launch of Pontes, a system that lets financial institutions settle wholesale transactions in tokenized assets using central bank money.