What's new
Overview
This dossiers provides on overview of the direction of tokenization efforts including insights from major public-sector led project initiatives and jurisdictional pilots and sandboxes as well as the emerging regulatory framework for tokenization and key associated policy questions.
What's new
U.S. Securities and Exchange Commission trading markets director signals coordinated Reg NMS recommendations and near-term perpetual futures launches
The U.S. Securities and Exchange Commission’s trading markets director expects recommendations on access fee caps and pricing increments to accompany any change to the trade-through rule. The director also reviewed the conditional framework for tokenized stock venues and expects at least four exchanges to begin trading perpetual futures on securities in the fourth quarter. SEC staff is separately examining conflicts involving exchange affiliations with broker-dealers.
Brazil Securities Commission launches DLT pilot spanning the securities lifecycle
The Brazil Securities Commission has launched a pilot for securities issuance, trading and post-trade operations on distributed ledger technology networks. The tests will assess viability and interoperability while identifying risks and regulatory gaps. Findings will inform possible regulatory or legislative changes.
Luxembourg Ministry of Finance announces EUR 1.7 billion first sovereign benchmark bond issued natively on DLT infrastructure
The Luxembourg State Treasury has placed a EUR 1.7 billion, 10-year sovereign benchmark bond issued natively on distributed ledger technology infrastructure. The 3.70% bond was issued through LuxCSD using Clearstream’s D7 platform and is eligible as collateral in Eurosystem credit operations.
Indonesia's Financial Services Authority highlights safeguards and investor literacy for real world asset tokenization
The Indonesia Financial Services Authority highlighted the financing and market access opportunities offered by real world asset tokenization, including models involving gold, government debt securities and property benefits. It stressed the need for legal certainty, governance, technology security and consumer protection, while urging young investors to verify legality and understand risks before investing.
European Supervisory Authorities set 2027 priorities for DORA oversight, AI, sustainable finance and securitisation
The European Supervisory Authorities have set their 2027 joint priorities, led by DORA oversight, cyber preparedness, AI and tokenisation, sustainable finance and securitisation. Planned work includes examinations of critical ICT providers, major incident reporting, cross-sectoral risk updates and technical measures linked to EU regulatory reforms. The programme will also seek to simplify requirements and reduce unnecessary regulatory burdens.
Central Bank of the UAE and Bank Al-Maghrib convene forum on Shariah harmonization and financial innovation
The Central Bank of the UAE and Bank Al-Maghrib convened central Shariah authorities to discuss harmonizing standards and improving consistency across Islamic finance markets. Workshops addressed regulation, asset tokenization, stablecoins and responsible use of advanced financial technologies in Shariah-compliant products.
European Securities and Markets Authority seeks evidence on safe use of tokenised collateral by central counterparties
The European Securities and Markets Authority is seeking evidence on whether European Union central counterparties can safely use tokenised forms of otherwise eligible collateral. The review covers legal certainty, liquidity, default management, client protection, operational resilience and interoperability across digital twin, native and hybrid models. ESMA will assess the evidence in the first quarter of 2027 before deciding whether regulatory or supervisory action is needed.
Monetary Authority of Singapore outlines digital finance scaling agenda, plans tokenised MAS Bill settlement with wholesale CBDC
The Monetary Authority of Singapore outlined a framework for scaling tokenised finance through regulatory clarity, trusted digital money and interoperable networks. It plans to settle tokenised MAS Bills with wholesale Singapore dollar CBDC and is advancing shared standards through Project Guardian, BLOOM and Global Layer One. MAS also released an updated runtime safeguards framework and open-source implementation for agentic finance.
International Monetary Fund outlines legal, regulatory and settlement conditions for tokenized markets to scale safely
The International Monetary Fund identifies legal certainty, regulatory clarity, interoperability and safe settlement assets as prerequisites for tokenized markets to scale. Current markets remain small and fragmented despite demand for round-the-clock trading and fractional ownership. Technology neutral regulation and stronger safeguards are needed to contain liquidity, leverage and contagion risks as adoption grows.
Brazil Securities Commission presents tokenization advances and targets AI supervision system by end-2026
The Brazil Securities Commission presented progress on its tokenization work and discussed the future regulatory framework for tokenized securities. Its proposed DLT pilot would test activities across the securities lifecycle, while an AI-based market supervision system is expected by the end of 2026.
Bank of Italy releases seven Occasional Papers on AI, tokenized money and financial market risks
The Bank of Italy has released seven studies covering AI, tokenized money, exchange rates, public procurement, private capital and climate-related investment behavior. The papers find that AI’s inflation effects depend on supply and demand timing, while bearer tokenized money can create par-value and regulatory risks regardless of the underlying technology. Other findings highlight litigation-related procurement delays, Italy’s still-underdeveloped private capital market and institutional selling of hurricane-exposed U.S. equities.
Dutch Authority for the Financial Markets and De Nederlandsche Bank call for clear legal framework for native securities tokenization
The Dutch Authority for the Financial Markets and De Nederlandsche Bank found that Dutch law does not support securities issued, held and transferred solely as tokens. They called for a coordinated review to determine whether regulatory clarification or legislative change is needed, as current dual registration requirements constrain efficiency and legal certainty.
Brazilian Securities and Exchange Commission plans AI assisted supervision tests and advances tokenization work
Brazilian Securities and Exchange Commission Chair Otto Lobo said the regulator will begin testing AI assisted, data driven supervision by the end of 2026. He also highlighted its Tokenization Working Group, which brings together internal departments and market participants to develop tokenization initiatives.
Hong Kong Monetary Authority and Bank Negara Malaysia agree expanded cooperation on stablecoins, payments and capital markets
The Hong Kong Monetary Authority and Bank Negara Malaysia agreed to expand cooperation on compliant cross-border stablecoin use cases, digital money and cross-border cyber resilience. They will also pursue stronger payment and securities infrastructure links, greater local currency use and closer collaboration on Islamic finance and trade finance access.
Bank of Spain Governor José Luis Escrivá backs interoperable tokenized finance anchored in central bank money
Bank of Spain Governor José Luis Escrivá called for tokenized financial markets to remain anchored in central bank money and connected through interoperable infrastructure. He highlighted Pontes, Appia and the digital euro as ways to adapt the two-tier monetary system, while urging coordinated technical and regulatory action to improve cross-border payments.
Brazil Securities Commission reviews September actions, including tokenization pilot proposal and more than BRL 200 million in fines
The Brazil Securities Commission reviewed its September actions, including completion of a proposed tokenization pilot and new guidance for auditors, public offerings and receivables investment funds. Enforcement measures included more than BRL 200 million in fines in a Banco Master case and a settlement exceeding BRL 2.3 million involving the current TC S.A.
South Korea Financial Services Commission consults on tokenized securities rules for February 2027 rollout
The South Korea Financial Services Commission is consulting on implementing rules for the tokenized securities framework due to take effect on Feb. 4, 2027. The proposals set eligible securities, distributed ledger conditions and a KRW 4 billion capital requirement for issuer account managers. They also establish an over-the-counter license category for debt securities and cap each retail investor’s annual net purchases at KRW 100 million per venue.
Ukraine's National Securities and Stock Market Commission and International Finance Corporation agree support for tokenization and securitization rules through 2029
Ukraine's National Securities and Stock Market Commission and the International Finance Corporation have agreed to develop regulatory frameworks for tokenized assets, securitization and other digital capital market instruments through 2029. The work will include regulatory gap analysis, drafting support, practical market guidance and staff training, with investor protection incorporated into the new approaches.
South Korea Financial Services Commission discusses tokenized securities and T+1 settlement with Nasdaq, DTCC and HKEX
South Korea Financial Services Commission Chairman Lee Eog-weon discussed tokenized securities, T+1 settlement and market competitiveness with Nasdaq, DTCC and HKEX. The talks informed South Korea’s preparations for its February 2027 tokenized securities framework and highlighted the need for institutional coordination and extended planning for settlement reform. Nasdaq also shared experience with market segmentation, delistings and exchange traded products.
International Swaps and Derivatives Association develops tokenized collateral proof of concept to support continuous trading
The International Swaps and Derivatives Association is developing a proof of concept for exchanging tokenized collateral under its documentation, including potential updates to credit support documents and legal opinions. The work is intended to enable continuous margin movement for 24/7 trading, but requires regulatory and legal clarity on custody, capital treatment and cross-border recognition.
Commodity Futures Trading Commission updates crypto FAQs on tokenized customer-fund investments and blockchain recordkeeping
The Commodity Futures Trading Commission updated its crypto FAQs to address tokenized forms of permitted customer-fund investments and the use of blockchain technology for registrant recordkeeping.
European Securities and Markets Authority announces 2027 digital innovation supervisory priority focused on AI and tokenisation
The European Securities and Markets Authority will begin a digital innovation supervisory priority in 2027, initially focusing on supervised entities’ use of AI and tokenisation. Authorities will map client facing uses, build common supervisory approaches and conduct initial checks on selected firms. The initiative will operate alongside the continuing cyber and operational resilience priority as the ESG disclosures priority closes.
Financial Conduct Authority signals joint tokenisation roadmap and consultation on asset safeguards
Financial Conduct Authority Chief Executive Nikhil Rathi called for wholesale tokenisation to move from pilots to adoption at scale. An upcoming joint roadmap with the Bank of England will set out the transition to established market infrastructure, while the FCA intends to consult on safeguards for relevant tokenised investment assets. Industry feedback highlighted opportunities in post-trade processes and obstacles involving settlement, interoperability and regulatory accountability.
Hong Kong Securities and Futures Commission unveils multiyear capital markets action plan spanning RMB markets, connectivity and digital assets
The Hong Kong Securities and Futures Commission has launched a multiyear action plan covering renminbi markets, cross-border connectivity, market infrastructure, digital assets and financial security. Near-term measures include a renminbi counter for southbound Stock Connect, work on REIT Connect, T+1 settlement and new digital asset licensing regimes. Longer-term plans would broaden renminbi products, tokenized investments and technology-enabled supervision.
Danish Financial Supervisory Authority sets 2030 technology agenda for AI, quantum risks, tokenization and innovation
The Danish Financial Supervisory Authority has set a technology agenda through 2030 covering AI, quantum technology, tokenization and financial innovation. It will assess emerging risks, clarify existing requirements and consider expanding its FT Lab regulatory sandbox, with the aim of supporting innovation without adding unnecessary rules or weakening financial stability and customer protections.