In a coordinated effort that underscores the growing importance of digital assets in the financial sector, Nasdaq, the Stuttgart Stock Exchange (Börse Stuttgart), and a coalition of other market participants have formally appealed to the European Union to either remove the existing ceiling on tokenisation projects or raise it to a level that reflects current market realities. The request comes as part of the EU’s broader regulatory experiment aimed at testing the viability and safety of tokenising real‑world assets, a process that converts physical or financial assets into digital tokens that can be transferred, stored, and traded on blockchain‑based platforms. The coalition’s letter to EU regulators highlights a central concern: the current cap on the total value of assets that can be included in the tokenisation pilot is set at a level that, in the view of the signatories, no longer matches the scale of projects already underway across Europe.
According to the coalition, several initiatives have already reached or exceeded the stipulated limit, which hampers their ability to fully demonstrate the benefits of tokenisation, such as increased liquidity, broader investor access, and more efficient settlement processes. Nasdaq, a global market operator known for its technology‑driven trading platforms, argues that the cap stifles innovation at a time when the industry is witnessing rapid advancements in distributed ledger technology (DLT).
"The tokenisation framework is a cornerstone of the EU’s ambition to become a leader in digital finance," said a spokesperson for Nasdaq. "However, the current ceiling creates an artificial bottleneck that prevents market participants from scaling up projects that could showcase the true potential of tokenised assets, from real‑estate and infrastructure to private equity and commodities." Börse Stuttgart, which has been actively developing its own tokenisation infrastructure through the digital exchange platform Xetra Digital, echoed similar sentiments.
The exchange points out that its pilot projects involving tokenised bonds and fractional shares have already attracted interest from institutional investors, but the imposed limit restricts the total value that can be tokenised under the EU’s sandbox. "We have seen a strong demand from our clients for larger‑scale tokenised offerings," the exchange noted. "Raising the cap would allow us to bring more substantial assets onto the blockchain, thereby delivering on the promise of deeper, more resilient markets." The coalition also includes a range of fintech firms, custodians, and asset managers, each of which has contributed case studies demonstrating that the current threshold is insufficient for meaningful experimentation. One such case involves a cross‑border infrastructure project valued at several hundred million euros, where tokenisation could enable fractional ownership and smoother financing across multiple jurisdictions.
Under the present cap, only a fraction of the project's value could be tokenised, limiting the ability to test the full suite of benefits, such as automated compliance checks and real‑time settlement. Beyond the immediate practical concerns, the signatories argue that maintaining a low cap could send a negative signal to the global market, potentially ceding leadership in digital asset innovation to jurisdictions with more permissive regulatory environments, such as the United States or certain Asian economies. They contend that the EU’s reputation for fostering a stable, transparent, and forward‑looking financial ecosystem could be undermined if the regulatory sandbox is perceived as overly restrictive.
In response, EU officials have acknowledged the feedback and indicated that they are reviewing the parameters of the pilot. A senior representative from the European Commission’s Directorate‑General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) stated that the Commission is committed to striking a balance between encouraging innovation and safeguarding market integrity. "We appreciate the constructive input from industry participants," the official said. "Our goal is to ensure that the tokenisation framework is both robust and flexible enough to accommodate the evolving needs of the market while protecting investors and maintaining financial stability." The coalition’s request also touches on broader policy considerations, such as the need for harmonised standards across member states, clear guidance on custody solutions for digital tokens, and the integration of tokenised assets into existing reporting and supervisory regimes.
By lifting or adjusting the cap, the EU could facilitate a more comprehensive assessment of how tokenisation interacts with anti‑money‑laundering (AML) rules, know‑your‑customer (KYC) procedures, and other regulatory safeguards. Analysts observing the development note that the push to raise the cap aligns with a growing consensus that tokenisation is not merely a niche experiment but a transformative technology that could reshape capital markets. They point out that larger‑scale pilots are essential for testing scalability, resilience under stress scenarios, and the interoperability of different blockchain platforms. In summary, Nasdaq, Börse Stuttgart, and their allied partners are urging the European Union to reconsider the current monetary ceiling imposed on tokenisation pilots.
Their argument rests on the premise that the existing limit is already being outstripped by real‑world projects, thereby limiting the ability to fully evaluate the benefits and challenges of tokenising assets at scale. By either removing the cap or raising it to a more appropriate level, the EU would enable a more thorough and realistic trial, potentially positioning Europe at the forefront of digital finance innovation while maintaining the rigorous standards that underpin its financial markets.