European groups push to remove or raise 100 billion euro cap on tokenized securities

A coalition of European financial institutions and tokenization groups has urged EU lawmakers to remove a proposed 100 billion euro cap on tokenized financial instruments or raise it significantly. The group drafted a letter addressed to the EU Council and the Economic and Monetary Affairs Committee on September 7. Members include Nasdaq, the Boerse Stuttgart Group, Securitize, the European Ethereum Institute, and Axiology. They argue that the current limit is too low because many existing European projects have already reached a scale of 350 billion euro. These groups contrast these figures with the United States, where dominant settlement platforms enable tokenization of US equities without such volume caps, potentially covering assets totaling up to 150 trillion euro. The proposal stems from a draft letter titled 'European finance groups push to remove tokenized securities cap.' The European Commission has proposed raising the current limit from 6 billion euro to as much as 100 billion euro as part of its Market Integration and Supervision Package. This package includes revisions to the Distributed Ledger Technology (DLT) Pilot Regime, which took effect in 2023.