The European Securities and Markets Authority will make artificial intelligence, tokenization and other emerging financial technologies a supervisory priority from 2027, coordinating national regulators across the European Union. Its Innovation with investor safeguards program will examine how regulated firms use AI and tokenized products in core activities affecting customers, rather than limiting scrutiny to back-office functions. Regulators will map existing and planned deployments next year, conduct initial checks of selected firms and identify where tokenization is taking hold. The initiative emphasizes governance, reliable data and client-aligned outcomes as financial institutions adopt technologies intended to support market competitiveness. It comes as the European Central Bank expands its involvement in blockchain-based markets through Pontes, plans to invest a small share of reserves in tokenized securities, and joins member-country central banks in calling for restrictions on stablecoin yields, rewards and returns. The EU is shifting from establishing crypto-asset rules under Markets in Crypto-Assets to supervising how AI and tokenized finance operate across the broader securities industry.