EU Wants Market Participants to Write Their Own Tokenisation Rulebook

The European Central Bank, European Commission and European Securities and Markets Authority (ESMA) have opened nominations for the European Tokenisation Standards Group, aiming to create unified rules for the rapidly evolving digital asset market.

The group will be tasked with developing standards for holding and settling tokenised securities across distributed ledger technology (DLT) platforms and existing financial infrastructure.

Applications for membership close on November 27, 2026, with the work expected to commence in January 2027, well before proposed EU reforms become law.

Industry-Led Standards Development

The new group will review existing European and international tokenisation standards to identify gaps and determine where additional rules are needed.

Its mandate covers the connections between DLT platforms and the links between those networks and existing financial infrastructure.

Industry representatives will chair the group and seek agreement through consensus, while the ECB, Commission and ESMA will participate as permanent observers.

Membership is open to financial firms, industry associations and technology providers, among other stakeholders, provided they have a European presence and relevant experience in financial standards.

Work Before the Legislative Requirement

The authorities want tokenisation standardisation work to start before lawmakers complete proposed changes to the DLT Pilot Regime, which is currently a proposal.

The Commission’s December 2025 Market Integration and Supervision Package would require participants in the post-trading chain to work towards interoperability and supporting technical standards.

The existing DLT Pilot Regime, applicable since March 2023, allows authorised operators to run trading and settlement infrastructure for tokenised financial instruments with specific regulatory exemptions.

The group aims to deliver its first standards supporting Appia, the Eurosystem’s initiative for an integrated tokenised financial ecosystem, by early 2028.

Next Steps and Future Framework

Once standards are agreed, members will develop a framework to monitor their implementation and may recommend measures for EU authorities to encourage adoption.

The focus on creating a common rulebook for tokenised assets is a critical step in the EU's broader strategy to modernise its financial markets and integrate digital assets.

The successful formation and operation of this group will be closely watched by market participants as they prepare for the future of finance.