EU Regulator Balances Tokenization Growth with Investor Safety

EU Regulator Balances Tokenization Growth with Investor Safety
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Europe’s top markets regulator is calling for careful balance as tokenized assets surge to a $600 billion global market. The European Securities and Markets Authority warns that while distributed ledger technology promises transformational change, investor safeguards must remain paramount. European markets already lead in fixed-income tokenization, accounting for over half of global issuance.

  • Europe accounts for over 50% of global tokenized fixed-income issuance, which tripled to €3 billion in 2023
  • Tokenized funds have surged 80% in 2024, now representing approximately $7 billion in assets under management
  • ESMA recommends making the EU's DLT Pilot Regime permanent to provide a regulatory sandbox for testing tokenization approaches
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