EU launches ETSG for tokenized securities standards
7.1 Regulation EU opens nominations for ETSG to create unified standards for tokenized securities, aiming to boost interoperability and reduce market fragmentation in Europe.
European institutions have opened nominations for the European Tokenisation Standards Group (ETSG), which will develop unified standards for holding and settling tokenized securities on both DLT platforms and traditional financial infrastructures. Eligible applicants include associations, global institutions, private companies, fintechs, and technical providers active in tokenisation or DLT-based financial services. Applications are accepted until November 27, 2026, with the group’s activities starting in January 2027. The ETSG will be industry-led, while the ECB, European Commission, and ESMA will participate as observers. The group will review current standards, identify gaps, and propose new rules to ensure interoperability between blockchain networks and existing financial systems. Initial standards are expected in early 2028 and will play a key role in the Eurosystem’s Appia project. ETSG will also monitor adoption and may suggest measures to promote compliance, aiming to reduce fragmentation in Europe’s tokenized financial market.
