The European Commission, European Securities and Markets Authority (ESMA) and European Central Bank (ECB) are recruiting industry members to devise standards for holding and settling tokenized financial instruments across separate market systems.
The group's mandate identifies fragmentation in existing financial infrastructure and warns that separate distributed ledger technology (DLT) networks could deepen it. Common standards are intended to help those systems work together and could improve efficiency.
The institutions opened nominations Nov. 9, with applications due Nov. 27. Industry members will chair the European Tokenisation Standards Group, while the three institutions will observe its work.
For financial instruments based on DLT, the proposed technical and market standards must address holding and settlement across distinct DLT systems and between DLT and conventional infrastructure. The assignment covers both how the systems operate and the market practices used with them.
The group must also devise a way to monitor adoption and compliance. Its members are expected to support implementation and wider market use, and the group may recommend measures to EU authorities that encourage compliance.
Technology providers and fintech firms are eligible to apply, along with EU associations, private companies, public-sector bodies and global institutions involved in tokenization or DLT financial services. Applicants must represent an organization with a presence in Europe.
The mandate places this work alongside the 2022 DLT Pilot Regime and changes proposed in 2025.
Appia, a Eurosystem initiative, is developing governance, standards and architecture for tokenized wholesale finance. It runs alongside Pontes, which connects DLT market platforms with Eurosystem settlement services. EconoTimes previously covered design trade-offs raised in an Appia consultation.
The group is envisaged to begin work in January 2027. It aims to deliver initial versions of standards relevant to the Appia roadmap in early 2028.
