In recent weeks, a coalition of leading financial market participants—including Nasdaq, the Stuttgart Stock Exchange (Börse Stuttgart), and a number of other prominent exchanges and service providers—has formally approached the European Union with a joint request to either remove the current ceiling on tokenised assets or to raise it substantially. This collective appeal underscores a growing consensus among industry stakeholders that the existing limit, set as part of the EU’s pilot regime for the tokenisation of assets, is too restrictive to accommodate the rapid evolution of digital finance and the increasing appetite for innovative investment products. The tokenisation pilot, introduced under the EU’s Markets in Crypto‑Assets (MiCA) framework, was designed to test the feasibility of converting real‑world assets—such as securities, real estate, and commodities—into digital tokens that can be issued, transferred, and settled on distributed ledger technology (DLT) platforms.
While the pilot aims to foster experimentation and ensure consumer protection, it imposes a cap on the total market value of tokenised assets that can be issued under the regime. This cap, initially set at a modest figure, was intended as a safeguard while regulators assess systemic risks.
However, participants in the pilot now argue that the ceiling is quickly being outstripped by actual market activity. In their petition, the coalition highlights several concrete examples of European projects that have already exceeded the prescribed limit. For instance, a tokenised real‑estate fund operating in Germany and France has raised capital well beyond the cap, demonstrating both investor demand and the practical viability of large‑scale tokenised offerings. Similarly, a cross‑border securities tokenisation initiative involving multiple EU member states has reported transaction volumes that dwarf the current threshold.
These cases illustrate that the cap is not merely a theoretical constraint but a real barrier that could stifle innovation, limit liquidity, and force market participants to seek alternative jurisdictions with more permissive regulatory environments. Beyond the immediate operational concerns, the coalition stresses broader strategic implications for the EU’s competitiveness in the global digital finance arena. As the United States, Singapore, and several Asian economies roll out more flexible tokenisation frameworks, the EU risks falling behind in attracting capital, talent, and technological development. The coalition’s argument is that a higher—or even removed—cap would signal confidence in the EU’s regulatory approach, encourage further investment in DLT infrastructure, and align the region with international best practices.
The petition also outlines a series of potential benefits that could arise from lifting the cap. First, a larger tokenisation market would enhance liquidity for traditionally illiquid assets, providing investors with new avenues for diversification and risk management.
Second, it would enable issuers to tap into a broader pool of capital, reducing reliance on conventional financing channels and potentially lowering the cost of capital. Third, an expanded tokenisation ecosystem could drive the development of ancillary services—such as custodial solutions, compliance tooling, and secondary market platforms—thereby creating jobs and fostering a vibrant fintech ecosystem within the EU.
From a regulatory perspective, the coalition acknowledges the importance of maintaining robust safeguards against money‑laundering, fraud, and systemic risk. However, they argue that these concerns can be addressed through targeted supervisory measures, enhanced reporting requirements, and the implementation of advanced monitoring technologies, rather than by imposing a blunt numerical ceiling. They propose a tiered oversight model where larger tokenised issuances are subject to proportionally stricter scrutiny, while smaller projects continue to benefit from a streamlined regulatory path.
In response to the petition, EU policymakers are expected to conduct a thorough impact assessment, weighing the potential economic gains against the need for financial stability. The European Commission’s Directorate‑General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) has indicated that it will consult with a wide range of stakeholders, including consumer groups, investor associations, and technology experts, before reaching a decision. Meanwhile, the coalition has pledged to continue its collaborative efforts, offering data, case studies, and technical expertise to assist regulators in crafting a balanced approach.
They emphasize that the ultimate goal is not merely to lift a restriction but to create a regulatory environment that nurtures responsible innovation while safeguarding market integrity. In summary, Nasdaq, Börse Stuttgart, and their partners are urging the European Union to reconsider the current tokenisation cap, citing concrete evidence that the limit is already being breached by active projects across the continent. Their request reflects a broader ambition to position the EU at the forefront of digital asset finance, ensuring that European markets remain attractive, competitive, and capable of leveraging the full potential of blockchain‑based tokenisation.
The outcome of this dialogue will likely shape the trajectory of the EU’s digital finance strategy for years to come.