38 partner organizations across Europe (financial institutions, fintech associations and professional federations) are calling on European policymakers via a joint letter to implement a rapid solution for the DLT pilot scheme.
Europe: Accelerating tokenization through a "DLTPR Quick-Fix"
In a context of rapid transformation of financial markets, the European Union finds itself at a pivotal moment to assert its position in the global race for asset tokenization.
While the European Commission has presented the Market Integration and Supervision Package (MISP) , aimed at strengthening the integration of capital markets and adapting the regulatory framework to technological innovations, a large group of European and international players is now calling for faster and more targeted action: the implementation of a "Quick-Fix" of the DLT (Distributed Ledger Technology) pilot regime.
A strategic issue for European competitiveness
The tokenization of financial assets, made possible by distributed ledger technologies, is profoundly transforming market infrastructures: issuance, trading, and settlement are becoming more efficient, transparent, and accessible. Across Europe, stakeholders—financial institutions, fintechs, and market infrastructures—are already investing in these new models. However, their development remains hampered by the current limitations of the DLT Pilot Regime (DLTPR), which is considered too restrictive.
At the same time, international competition is intensifying significantly. The United States, in particular, is accelerating the transition of its capital markets to "on-chain," with the support of regulators and major technology and financial players.
Without a swift response, Europe risks not only losing its attractiveness, but also allowing other jurisdictions to define global standards.
The MISP: an important step forward but insufficient in the short term
The MISP represents a positive step towards a more integrated and innovative European capital market. In particular, it provides for better integration of DLT technologies within the existing regulatory framework, based on the principle of "same risk, same regulation." However, the complexity of the legislative package suggests lengthy negotiations. Yet, the necessary adjustments to the DLTPR are urgent to avoid disrupting the current momentum of innovation. Therefore, the signatories of this letter advocate a pragmatic approach: extracting the DLTPR revision from the MISP and accelerating it through a dedicated text.
A pragmatic and targeted "Quick-Fix"
This “DLTPR Quick-Fix” initiative aims to quickly remove the main obstacles to the development of DLT-based market infrastructures in Europe.
Among the priority measures proposed:
- Expand the range of eligible assets to all financial instruments
- Significantly increase volume ceilingsup to 100-150 billion euros
- Remove limits per instrumentwhich hinder the industrialization of use cases
- Lifting time restrictions on licensesto give visibility to the actors
- Allow for immediate application new rules as soon as they come into force
These developments constitute technical but structural adjustments to unleash investment and innovation.
An opportunity to strengthen European sovereignty
Beyond competitiveness issues, Europe's ability to develop its own tokenized market infrastructures also relates to its economic and financial sovereignty.
Accelerating on DLT means:
- strengthen European market infrastructures;
- support local innovation;
- to ensure that future standards reflect European values and interests.
A call to action
Faced with the urgency and intensity of international competition, industry stakeholders are calling on European co-legislators to act swiftly. Launching a DLTPR Quick-Fix would send a strong signal: that of a Europe capable of combining regulatory ambition and agility, serving innovation and competitiveness.
France FinTech fully supports this collective dynamic aimed at making Europe a leader in tokenized capital markets.
