EU Institutions Establish Group for Tokenized Securities Standards
BITmarkets Team
Nov 10, 2026
The three institutions are inviting industry representatives to join the European Tokenisation Standards Group (ETSG), which will develop technical and market standards for holding and settling securities issued or managed using distributed ledger technology (DLT).
According to an announcement, applications will remain open until Nov. 27, with the group expected to begin its work in January 2027.
EU institutions establish group for tokenized securities standards
The European Tokenisation Standards Group will bring together financial industry participants to develop a coordinated framework for tokenized securities. Eligible applicants include European Union industry associations, international financial institutions, private companies and financial technology firms.
The ECB, European Commission and ESMA will participate as observers, allowing the initiative to remain industry-led while maintaining engagement with European regulatory authorities. The group's primary objective is to establish common technical and market standards that enable financial institutions to hold and settle tokenized securities across different blockchain and DLT platforms.
The standards will also focus on interoperability, ensuring that tokenized financial systems can communicate with one another and integrate with existing financial market infrastructure. According to the group's official mandate, an initial set of standards is expected to be completed by early 2028.
The initiative is intended to address potential inconsistencies between tokenization platforms as financial institutions increasingly explore blockchain-based securities and settlement systems.
European regulators seek to prevent market fragmentation
European authorities have warned that the development of incompatible tokenization systems could undermine the potential benefits of adopting distributed ledger technology in financial markets. Without common standards, institutions operating across different platforms could face difficulties transferring, holding or settling tokenized securities.
The ETSG will therefore work toward establishing a more consistent framework that supports interoperability between DLT networks and conventional financial infrastructure. The group may also recommend measures that European Union authorities could introduce to encourage financial institutions and technology providers to adopt the proposed standards.
These efforts will support Appia, the Eurosystem's initiative to develop a blueprint for the future of Europe's tokenized financial markets. By coordinating technical requirements and market practices, the initiative aims to support the development of a more integrated environment for tokenized financial instruments.
Eurosystem advances tokenized settlement infrastructure
The creation of the ETSG follows other initiatives aimed at integrating tokenized assets into Europe's financial system. In September 2026, the Eurosystem launched Pontes, a settlement system designed to allow financial institutions to settle wholesale transactions involving tokenized assets using central bank money.
Pontes represents an important component of the Eurosystem's broader efforts to connect distributed ledger technology with established financial infrastructure. While Pontes focuses on enabling settlement in central bank money, the ETSG will address the common standards needed for tokenized securities to operate across different platforms.
Together, these initiatives reflect Europe's efforts to establish a coordinated framework for blockchain-based financial markets. With the standards group scheduled to begin work in January 2027 and deliver its initial recommendations by early 2028, European institutions are seeking to establish the technical foundations for broader adoption of tokenized securities while reducing the risk of fragmented market infrastructure.
Sources:
https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews261109_annex1.en.pdf
https://cointelegraph.com/news/eu-nominations-tokenization-standards-group
