Securitize and peers urge European Union to relax distributed ledger technology pilot limits
Several European firms call on EU lawmakers to amend the DLT Pilot Regime to prevent the U.S. from overtaking Europe’s tokenization leadership, highlighting restrictive asset scope and license terms.
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Fact Check
The evidence strongly supports the statement's truthfulness. The most direct and compelling evidence comes from a Mondaq article, which explicitly reports that 'Securitize and other market operators sent a joint letter to the EU.' The article states that this letter 'urges the EU to make "targeted fixes" to its DLT Pilot Regime, warning that current constraints risk pushing markets to the US.' This directly corroborates every element of the claim: the specific company (Securitize), the action (urging the EU), and the subject matter (relaxing the limits/constraints of the DLT pilot program).Further support comes from an AInvest.com article titled 'Tokenization Firms Warn EU DLT Pilot Constraints...' This indicates a broader industry movement, of which Securitize is a part, to communicate concerns about the program's limitations to European authorities. The other sources, including the official ESMA website and legal analyses, establish the context for this type of industry feedback. They confirm that ESMA, the regulator, conducts consultations and receives responses from stakeholders, which is the formal process through which such urging would occur. There are no contradictions in the provided sources. The evidence is consistent and points directly to the conclusion that Securitize, along with other companies, has actively lobbied the EU to make its DLT pilot program less restrictive.
Summary
Several EU-regulated firms, including Securitize, 21X, and Boerse Stuttgart Group, have called for changes to the EU’s DLT Pilot Regime. They warned that restrictions on asset scope, issuance size, and license terms could cause Europe to lose its lead in tokenized markets to the U.S. They urged the EU to remove asset limits, raise transaction volume caps to €100–150 billion, and eliminate the six-year license cap to prevent liquidity migration and protect the euro’s competitiveness.
Terms & Concepts
- Tokenization: The process of converting real-world or traditional financial assets into blockchain-based tokens for issuance and trading.
- Distributed ledger technology (DLT): A shared, immutable database that records transactions across multiple nodes without a central authority.
- DLT pilot: An EU sandbox framework allowing limited-scale trading and settlement of tokenized assets under temporary exemptions.