EU finance groups seek higher tokenized securities cap

A coalition of European financial and tokenization groups is urging EU lawmakers to either remove a proposed cap on tokenized financial instruments or raise it substantially. The groups say the current draft limit of 100 billion euros would be too low for the market to grow at scale. In a letter dated Sept. 7 and sent to the European Council and the European Parliament’s Economic and Monetary Affairs Committee, the signatories said that if a cap is kept, it should be set at at least 500 billion euros. They noted that some existing European projects are already valued at about 350 billion euros and expect further expansion. The signatories include Nasdaq, Boerse Stuttgart Group, Securitize, the European Ethereum Institute and Axiology. They argued that Europe’s rules should better reflect the size of global capital markets and compared the proposal with the US, where tokenization activity is not subject to similar volume caps. The letter comes as the European Commission reviews the DLT Pilot Regime, which lets firms test blockchainbased trading and settlement under limited regulatory exemptions.