EU's financial regulator to make AI and tokenization a supervisory priority in 2027
The European Securities and Markets Authority (ESMA) has announced that AI and tokenization will be key supervisory priorities for 2027. Regulators aim to ensure investor safeguards and proper governance as financial firms increasingly integrate these technologies into core operations.
Why it matters
This signals a tightening of the regulatory environment for digital assets and AI in the EU, forcing financial institutions to prioritize compliance and risk management.
“Firms are increasingly using AI and tokenized products in day-to-day financial services to gain market share,” the financial watchdog said in a report released Wednesday , explaining why it is focusing on these two areas initially. “Technological innovation brings benefits but also risks,” it added.
Under its new supervisory program, the ESMA and national regulators across the European Union will examine how regulated firms use artificial intelligence and tokenized products in their core activities, rather than only in back-office operations.
The initiative, called “Innovation with investor safeguards,” will focus on building regulators’ ability to supervise new technology and ensuring firms have proper governance, reliable data and client-aligned outcomes.
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