ECB, EU regulators seek common rules for tokenized securities

The European Central Bank (ECB), European Commission and European Securities and Markets Authority (ESMA) have launched a joint initiative to develop common standards for tokenized securities, inviting financial institutions and blockchain companies to apply by Nov. 27. Summary The ECB, European Commission and ESMA launched an industry group to develop tokenized securities standards. Financial institutions, fintech companies and blockchain providers can apply for membership until November 27, 2026. The group will develop common rules for holding and settling tokenized securities across financial systems. Industry representatives will lead the initiative, with initial standards expected to be ready by early 2028. According to the European Commission’s Nov. 9 announcement, the new European Tokenisation Standards Group (ETSG) will bring together financial market participants to establish common rules for holding and settling securities across blockchain networks and traditional financial systems. The group is expected to begin work in January 2027, with the first standards scheduled for early 2028. Industry representatives will lead the discussions, while the three European authoritie...