Europe Prepares Common Standards for Tokenized Securities

The European Central Bank (ECB), the European Commission and ESMA launched a call for applications on Monday to create the European Tokenisation Standards Group. This group, led by private actors, will have to define common standards for the custody and settlement of tokenized securities by early 2028. The three European institutions will participate in the work as observers.

Tokenized securities, industry in charge, regulators observing

Tokenization progresses faster than the rules that govern it. In the face of this evolution, European institutions want to avoid each player developing their own rules in isolation.

The mandate of the new group therefore foresees a common framework to monitor compliance with adopted standards. It may also propose measures to authorities to encourage companies to apply them.

One detail deserves attention: the industry will define the standards, participate in monitoring their implementation, and then advise regulators on ways to enforce them. An organization that leaves an important place to private actors.

Governance confirms this orientation. According to the European Commission’s press release, the presidency will go to the industry, while the ECB, the Commission and ESMA will sit as observers. Professional associations, private companies, financial institutions, fintechs and technology providers can submit their applications.

Concretely, the group will have to solve a well-known problem: making infrastructures that do not always speak the same language communicate. An investor should be able to hold a security on one platform and settle it on another without multiplying intermediaries.

The stake is significant. If each bank develops its own ledger without ensuring compatibility with others, tokenization risks replicating the silos of traditional finance. In other words, changing technology without changing habits.

An ambitious schedule facing infrastructures already in motion

The schedule leaves little room. Applications will close on November 27, 2026, work will begin in January 2027, and the first standards should arrive early 2028.

However, Europe is not waiting for this group to move forward. In December 2025, the Commission already adopted the package on market integration and supervision. This text notably asks post-trade chain actors to promote interoperability between distributed ledger infrastructures and to define common technical standards.

On its part, the Eurosystem launched Pontes in September 2026. This device allows settling large-value transactions on tokenized assets in central bank money. Future standards will also contribute to Appia, the Eurosystem project dedicated to organizing European tokenized markets.

In plain terms, infrastructures are beginning to take shape while their user manual remains to be written.

Private actors have not waited. JPMorgan already offers tokenized money market funds on Solana. On the network, the value of tokenized assets has increased from 700 million to 4.3 billion dollars in one year. The market is advancing while institutions are still trying to harmonize their approaches.

Common standards, but what capacity to enforce them?

However, this group should not be confused with a regulator. Its private presidency and the presence of the three institutions as mere observers give it no direct power to adopt regulations or sanction companies.

Its influence will depend mostly on the reception of its recommendations by European authorities.

The group may notably propose mechanisms to encourage actors to respect the standards. This could range from a simple compliance label to access conditions to certain Eurosystem infrastructures. For now, no precise mechanism has been adopted.

Disagreements around stablecoins show that European compromises are not always easily found. France notably opposes the ECB on token remuneration.

In the end, standards may gain weight if regulators integrate them into their requirements. Otherwise, they risk joining the long list of good recommendations that everyone approves but few actors actually apply.

Applications remain open until November 27, 2026. The composition of the group will already give a first glimpse of the interests that will weigh on the future of European tokenized markets. Cointribune will continue to follow the evolution of European regulation on tokenized assets.