Nasdaq, Boerse Stuttgart, others ask EU to remove or increase cap in tokenization trial
A coalition of financial firms and industry groups has urged the European Union to remove or significantly increase the market value cap for its blockchain tokenization pilot program. They argue that the current 6 billion-euro limit is insufficient to support the growth of digital asset markets.
Why it matters
The debate over these caps reflects the tension between regulatory caution and the desire to foster innovation in digital financial infrastructure.
The request came in a letter addressed to the European Council and European Parliament with signatories including French digital asset association Adan, the Crypto Council for Innovation and the European Ethereum Institute, along with companies including Nasdaq and Boerse Stuttgart.
The European Union’s decentralized ledger pilot regime allows operators to test trading and settlement of tokenized stocks, bonds and investment funds with exemptions from certain existing financial rules. The European Commission proposed expanding the pilot’s framework after seeing what it called “modest” participation .
Tokenization is the representation of financial instruments on a blockchain as a digital asset.
The commission proposed raising the current 6 billion-euro ceiling to 100 billion. Adan said the increase remains insufficient given developments in global markets. The group’s preferred outcome is to remove the cap entirely, or, at least, set it to 1.5 trillion euros, 15 times the proposed ceiling.
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