Nasdaq, Boerse Stuttgart, others ask EU to remove or increase cap in tokenization trial
A coalition led by Nasdaq and Boerse Stuttgart has urged the European Union to either remove or raise the existing cap in its tokenization trial. The group says the current limit is too restrictive and points out that some active European tokenization projects already exceed that threshold.
Why It Matters
If the cap remains in place, it risks excluding or constraining initiatives that already surpass the limit, potentially hindering broader adoption of tokenized financial instruments across Europe. Adjusting or removing the cap could allow larger-scale projects to participate in the EU trial.
Key Facts
- Requesters: Nasdaq, Boerse Stuttgart and other unnamed organisations
- Request: Ask the European Union to remove or increase the cap in its tokenization trial
- Reason given: The coalition warned the current limit is too low
- Additional note: Some existing European tokenization projects already exceed the current cap
A group of financial market participants that includes Nasdaq and Boerse Stuttgart has formally requested that the European Union alter the cap applied in its tokenization trial. The coalition’s appeal asks regulators to either eliminate the limit or raise it to better accommodate market activity.
The coalition argues the present threshold is unduly restrictive, warning it could prevent realistic participation by established projects. According to the group, several tokenization initiatives already operating in Europe surpass the existing cap, suggesting the trial’s parameters do not reflect current market conditions.
Proponents of the change say a higher or removed cap would permit a broader set of use cases and let larger projects join the trial, while leaving the cap as-is could sideline efforts that exceed the limit. The coalition’s communication frames the adjustment as necessary to ensure the trial captures a realistic cross-section of the European tokenization ecosystem.
EU authorities will need to consider these concerns when finalising the trial’s rules. Any decision to modify the cap could influence which projects are able to participate and how representative the pilot ends up being of tokenization activity across Europe.
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