EU taps industry to set standards for tokenized securities
The European Central Bank, European Commission, and European Securities and Markets Authority have launched a call for nominations for the European Tokenisation Standards Group (ETSG). This industry-led initiative aims to establish common technical and market standards for the holding and settlement of tokenized securities across various distributed ledger technology platforms. By fostering interoperability between DLT systems and existing financial infrastructure, the group seeks to mitigate market fragmentation that currently hinders the adoption of tokenized assets. Applications for the group are open until November 27, with formal work scheduled to commence in January 2027. The project is a critical component of the Eurosystem’s Appia initiative, which serves as a blueprint for the future of European tokenized financial markets. The group is expected to deliver its initial set of standards by early 2028, potentially influencing how EU authorities incentivize industry-wide adoption. This development marks a significant regulatory and structural step toward institutionalizing tokenized securities within the European Union's financial ecosystem.