In a coordinated effort that underscores the growing importance of digital assets in modern finance, a group of prominent market participants—including Nasdaq, the Stuttgart Stock Exchange (Börse Stuttgart), and several other leading institutions—have formally petitioned the European Union to either remove the existing ceiling on tokenised assets or substantially increase it within the framework of the EU’s ongoing tokenisation trial. This appeal reflects a broader consensus among industry stakeholders that the current regulatory limit, set at a relatively modest €100 million, is rapidly becoming a bottleneck for innovative projects that aim to leverage blockchain technology to fractionalise, trade, and manage a wide array of assets ranging from securities to real estate and even intangible intellectual property. The coalition’s statement highlights several concrete examples of European initiatives that have already outgrown the cap. For instance, a cross‑border securities tokenisation platform operating out of Frankfurt has successfully issued tokenised bonds with a total nominal value exceeding €150 million, while a German‑based real‑estate tokenisation project in Berlin has raised more than €120 million through the issuance of fractional ownership tokens.
These cases illustrate that the cap is not merely a theoretical constraint but a practical impediment that forces projects to either truncate their ambitions or seek alternative, potentially less regulated jurisdictions. The petition to the EU is grounded in a number of arguments.
First, the coalition points out that the cap was originally designed as a temporary safeguard while regulators gathered data on the risks associated with tokenised assets. However, after several years of pilot programmes and the accumulation of empirical evidence, the participants argue that the risk profile is now better understood, and the cap no longer serves its intended protective function. Second, they contend that a higher or eliminated cap would unlock significant economic benefits, including increased capital formation, enhanced liquidity for traditionally illiquid assets, and broader access for retail investors who have historically been excluded from high‑value private markets.
In addition to the economic rationale, the coalition emphasizes the strategic importance of maintaining Europe’s competitive edge in the global race for blockchain innovation. While the United States and several Asian economies have already relaxed their own limits or introduced more flexible regulatory sandboxes, Europe risks falling behind if it continues to impose restrictive thresholds. Nasdaq, with its extensive experience in operating regulated markets across multiple continents, warns that a misalignment between EU policy and market realities could drive issuers to list tokenised securities on exchanges outside the European Economic Area, thereby eroding the EU’s market share and diminishing the potential tax revenues associated with these activities. The petition also addresses concerns related to investor protection and market integrity.
The coalition proposes that, rather than relying on a blunt monetary ceiling, the EU should adopt a risk‑based approach that incorporates robust AML/KYC procedures, real‑time monitoring of tokenised asset transactions, and clear disclosure requirements. By enhancing the supervisory framework in these specific areas, regulators can mitigate the risks of fraud, money laundering, and market manipulation without stifling innovation through overly restrictive caps.
From a technical standpoint, the coalition notes that modern blockchain platforms now support sophisticated compliance mechanisms, such as on‑chain identity verification and programmable regulatory rules that can enforce jurisdiction‑specific restrictions automatically. These technological advancements make it feasible to supervise larger volumes of tokenised assets without compromising oversight. Moreover, the coalition highlights that many of the projects already operating above the current cap have voluntarily adopted best‑in‑class governance standards, including third‑party audits, transparent reporting, and the use of custodial solutions that protect investors’ holdings.
In response to the petition, EU officials have indicated a willingness to review the cap as part of the broader Digital Finance Package, which aims to create a harmonised regulatory environment for digital assets across member states. However, they have also cautioned that any amendment must be balanced against the need to preserve financial stability and protect consumers, especially given the volatility observed in certain crypto‑related markets. The dialogue between the coalition and EU policymakers is expected to continue over the coming months, with several consultation workshops already scheduled.
These sessions will allow regulators to gather further input from a wide range of stakeholders, including smaller fintech firms, institutional investors, and consumer advocacy groups. The ultimate goal is to craft a regulatory framework that both encourages innovation and safeguards the integrity of the financial system.
In summary, the joint request from Nasdaq, Börse Stuttgart, and their allies reflects a clear signal from the market: the existing €100 million cap on tokenised assets is increasingly out of step with the scale and sophistication of European projects. By either removing the limit or raising it to a level that aligns with current market realities, the EU can foster a more vibrant tokenisation ecosystem, attract capital, and position itself as a global leader in the digital transformation of finance. The outcome of this policy discussion will have far‑reaching implications not only for tokenised securities but also for the broader adoption of blockchain technology across the continent.