ECB, EU regulators open tokenized securities standards group

The European Tokenisation Standards Group will develop rules for holding and settling financial instruments across distributed ledger technology platforms and between blockchain networks and existing financial infrastructure. Its first standards are expected by early 2028. Industry representatives will lead discussions, while the three authorities will take part as observers.

The group will examine differences in how institutions record ownership, exchange transaction information and complete securities transfers. It will review existing European and international standards before deciding where additional technical requirements are needed. Its mandate also calls for a framework to monitor adoption and allows it to recommend measures to encourage implementation; the proposed standards will not automatically bind every financial institution.

Membership is open to European industry associations, private companies, international financial institutions, fintech businesses and technical service providers. Applicants must have relevant experience, a European presence, and the resources to contribute and commit their organizations to follow-up actions. The authorities will assess candidates for professional qualifications and balanced representation across regions and sectors.

The standards are intended to support the Eurosystem’s Appia initiative, launched in March 2026 to develop an integrated framework for tokenized financial markets. They may also help connect with Pontes, the ECB’s blockchain settlement service, which began operating in September and links blockchain platforms with TARGET services for settlement in central bank euros.

The initiative is also related to the European Commission’s December 2025 Market Integration and Supervision Package, which proposed changes to the EU’s DLT Pilot Regime. The ETSG will begin work before any proposed amendments become law and could coordinate related work if lawmakers adopt them. The group must report regularly to the authorities and publish a public activity summary at least annually.