Boerse Stuttgart, Nasdaq and 39 Firms Urge Faster European Union DLT Pilot Reform

A joint letter to the European Commission and European Parliament calls for a separate review of the DLT pilot (distributed ledger technology testing framework), a €150 billion cap and broader tokenized trading rules.

Summary

Boerse Stuttgart Group, Nasdaq and 39 other institutions urged the European Commission and European Parliament to split out reform of the DLT pilot (distributed ledger technology testing framework) for a faster review. The signatories proposed raising the cap to €150 billion, expanding tokenized trading and settlement to all financial instruments, and removing limits on license duration. They warned that Europe risks falling behind the United States in tokenized assets if the framework is not updated more quickly.

Terms & Concepts
  • DLT pilot: A European Union regulatory testing framework for market infrastructure using distributed ledger technology in trading and settlement.
  • Tokenized assets: Traditional or digital assets represented on a blockchain or similar ledger to enable trading, transfer and settlement in digital form.
  • Settlement: The final transfer of cash and securities after a trade is completed, a core function that tokenization aims to streamline.