EU finance groups push to remove tokenized securities cap
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A coalition of European financial and tokenization groups, including Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology, has urged EU lawmakers to remove or significantly raise the proposed 100 billion euro cap on tokenized financial instruments to at least 500 billion euro. The letter, dated September 7, argues that the current cap would be insufficient given that some existing European projects already reach 350 billion euro in scale. The coalition also contrasted EU limits with the US, where no volume caps exist for tokenized equities and other assets.
Why it matters
The source highlights that the proposed 100 billion euro cap may limit the growth and scaling of regulated onchain markets in Europe, potentially pushing liquidity to US markets where tokenization rules are less restrictive. The coalition's push aims to enable European projects to grow in line with global competitors and avoid regulatory barriers that could stifle innovation and market development.
Key context
The cap is part of a proposal from the European Commission to raise the prior 6 billion euro limit to as much as 100 billion euro under the Distributed Ledger Technology (DLT) Pilot Regime, introduced in 2023 to allow blockchain-based trading and settlement of financial assets. Previous letters from financial firms and industry groups in February and April also pressed for raising limits, expanding eligible assets, and removing license time limits to prevent market stagnation. The 100 billion euro cap applies to the market value of instruments admitted to DLT infrastructures, not their trading volume, rendering it relatively small compared to global markets.
Key numbers and entities
The coalition includes Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology. The proposed EU cap is 100 billion euro, with the coalition asking to raise it to at least 500 billion euro. Existing European projects reportedly reach 350 billion euro in scale. The US market tokenization could cover as much as 150 trillion euro in assets. The total value of distributed real-world assets is approximately $39.15 billion, with US Treasury debt comprising about $15.8 billion.
What remains unclear
The source does not clarify whether EU lawmakers have responded to the coalition’s letter or if there is a timeline for deciding on the cap’s adjustment. It also does not specify the exact mechanisms for how the 500 billion euro baseline would be implemented or enforced if accepted. The potential impact on specific asset classes beyond equities and bonds within the DLT Pilot Regime remains unspecified.