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
Hong Kong Securities and Futures Commission launches pilot framework for 24/7 secondary trading of tokenised authorised investment products on licensed virtual asset trading platforms
The Hong Kong Securities and Futures Commission has issued guidance establishing a regulatory framework to pilot secondary trading of tokenised SFC-authorised investment products, initially focused on tokenised open-ended funds on SFC-licensed virtual asset trading platforms. It aims to broaden regulated secondary-market access for retail investors, support potential round-the-clock trading and the use of regulated stablecoins, and incorporates requirements on fair pricing, orderly trading, liquidity provision and disclosure. The SFC highlighted rapid market growth, with 13 tokenised products publicly offered and tokenised assets under management rising about seven-fold over the past year to HKD 10.7 billion as of March 2026.
National Bank of Georgia invites supervised brokerages to join regulatory sandbox for tokenized bonds
The National Bank of Georgia has opened its regulatory sandbox on tokenized bonds to supervised brokerage companies to test new models for bond issuance, recording, and trading using digital tokens and to inform future regulation. Tokenized bonds are positioned as programmable digital equivalents of traditional bonds intended to improve issuance efficiency, automate servicing, increase liquidity, reduce transaction costs, and broaden access for corporate issuers and small investors, without implying any licensing or regulatory pre-commitment.
European Central Bank outlines September start of Pontes tokenised central bank money settlement and Appia roadmap for tokenised markets
The European Central Bank published a keynote speech by Executive Board member Piero Cipollone on how tokenisation and distributed ledger technology could reshape financial market infrastructure and how the Eurosystem will support this transition. The speech confirmed that under the Pontes project the Eurosystem will provide tokenised central bank money settlement for distributed ledger technology-based transactions from September 2026 and has begun accepting certain distributed ledger technology-issued securities as collateral in Eurosystem credit operations. Cipollone also highlighted the Appia roadmap to develop by 2028 a blueprint for a European tokenised financial ecosystem and indicated further work on expanding collateral eligibility.
European Central Bank Macroprudential Bulletin sets out policy priorities for safe scaling of tokenisation and distributed ledger technology
The European Central Bank’s 33rd Macroprudential Bulletin reviews the shift of tokenisation and distributed ledger technology from concept to early-scale deployment, highlighting potential benefits for deeper, more efficient EU capital markets, conditional on aligned policy, settlement in central bank money, and robust regulatory and macroprudential frameworks. It examines settlement models, traded asset types, the impact of MiCA‑compliant stablecoins on sovereign bond markets and banks, and notes tokenised assets on public blockchains reached a global market capitalisation of USD 45 billion by February 2026. The bulletin also details Eurosystem work on wholesale central bank money settlement, including the Pontes and Appia initiatives and potential eligibility of DLT‑based assets as Eurosystem collateral.
European Central Bank research finds tokenised bonds have lower yield spreads and narrower bid-ask spreads than comparable conventional bonds
The European Central Bank published research finding that tokenised bonds using distributed ledger technology have lower borrowing costs at issuance and tighter bid-ask spreads than comparable conventional bonds, although operational cost savings are not yet evident. The article links tokenisation’s future impact to infrastructure choices and market scalability, and highlights ongoing Eurosystem work on DLT-based collateral, market infrastructure modernisation, and reviewing the EU DLT Pilot Regime within the Market Integration and Supervision package.
Bermuda Monetary Authority launches consultation on asset tokenisation framework and dual-licensing exemptions
The Bermuda Monetary Authority has issued a consultation paper proposing regulatory clarifications and additional requirements for asset tokenisation within existing financial services regimes, focusing on the “asset leg” and distinguishing between “digital twins” and “native tokens” on a substance-over-form basis. The paper proposes a harmonised definition of “tokenised investments” across multiple Acts, mirrored exemptions to avoid dual licensing, extensions of existing digital asset cyber and custody codes, amendments to enable tokenised fund registers and disclosures, and role-based requirements for Primary Tokenisers, Secondary Offerors and Custodians, including 1:1 reserve expectations, proof-of-reserves, smart contract controls and baseline cyber governance.
International Monetary Fund outlines five-pillar policy roadmap for tokenized finance
The International Monetary Fund has outlined a five-pillar policy roadmap for tokenized finance focused on safe settlement assets, consistent regulation, legal certainty, interoperability and updated crisis management. The analysis warns that continuous settlement and automation could amplify liquidity stress, concentration and cross-border contagion. It calls for stronger oversight of code and infrastructure, real-time supervision and central bank tools suited to 24/7 tokenized markets.
Central Bank of Ireland opens discussion on DLT and tokenisation and sets out priorities for Europe’s digital asset and payments infrastructure
The Central Bank of Ireland has published a Governor’s blog and discussion paper on distributed ledger technology and tokenisation, framing them within efforts to modernise Europe’s payment and settlement infrastructure while keeping central bank money as the settlement anchor as activity moves on-chain. The paper sets out potential benefits and use cases across markets, funds and payments, key enablers such as legal clarity, interoperability, resilience, digital identity and governance, and risks including new concentrations of control, smart-contract and bridge vulnerabilities, liquidity and leverage amplification, and supervisory challenges. It also notes the rapid growth of tokenised money market funds and links payments initiatives to Eurosystem work on a digital euro and wholesale DLT settlement, including the Pontes and Appia tracks and a planned Pontes pilot by end-Q3 2026.
Thailand Securities and Exchange Commission amends mutual fund rules to enable faster sale and redemption of tokenized fund units
The Thailand Securities and Exchange Commission has amended mutual fund regulations to permit the sale and redemption of mutual fund units issued in tokenized form, with the aim of enabling faster transaction processing and clarifying related rules. The revised requirements, now in force, provide operational guidance for mutual funds issuing tokenized units following broad support in a prior public hearing.
European Central Bank study estimates tokenised money market funds at around EUR 7 billion and warns of amplified run and operational risks
The European Central Bank published analysis on tokenised money market funds (TMMFs), estimating the global market at around EUR 7 billion and noting most structures remain partly off-chain, creating a mismatch between token and underlying fund liquidity. Tokenisation can enhance settlement speed and availability but may amplify liquidity and run risks through additional operational, cyber and market-structure vulnerabilities, including reliance on stablecoins and dual on-chain/off-chain infrastructures. The ECB identifies supervisory priorities to apply existing money market fund rules consistently to TMMFs and improve data and reporting on their size, use cases and interlinkages with traditional and digital asset markets.
European Central Bank outlines Eurosystem tokenisation response with Pontes central bank money settlement planned for Q3 2026 and Appia blueprint by 2028
The European Central Bank published a Macroprudential Bulletin article on the rapid growth of tokenised assets and the Eurosystem’s policy response to support an integrated European digital capital market while safeguarding financial stability. It outlines plans to enable settlement of distributed ledger technology asset transactions in central bank money via the Pontes project by the third quarter of 2026 and to develop an integrated digital financial ecosystem blueprint under Appia by 2028, addressing regulatory frictions and lessons from the European Union DLT Pilot Regime. The article also notes the Eurosystem’s March 2026 decision to accept certain DLT-based collateral for credit operations and ongoing work on potential eligibility of other DLT-issued assets.
Canadian Securities Administrators launches Project Tokenization and invites stakeholders to Calgary and Toronto workshops
The Canadian Securities Administrators has launched Project Tokenization under its CSA Collaboratory to examine tokenized financial products in Canada’s capital markets and their interaction with Canadian securities laws, aiming to support coordinated regulatory responses. The initial phase will assess opportunities and risks through stakeholder engagement, issue mapping, and targeted research, with potential later phases including a discussion paper and live testing of tokenized instruments and related infrastructure.
European Central Bank publishes comprehensive payments strategy covering tokenised settlement assets, T2 enhancements and the digital euro
The European Central Bank has outlined a Eurosystem payments strategy combining upgrades to existing infrastructures with new solutions across wholesale, corporate, retail and cross-border payments, anchored in central bank money to strengthen European autonomy, innovation and the euro’s international role. Key elements include an integrated market for tokenised settlement assets with tokenised central bank money, continued investment in T2 and DLT-compatible money via Pontes and Appia, enhanced digital euro and EU-governed wallets, and cross-border initiatives using TIPS and BIS Project Nexus. Pontes is due by end-Q3 2026 and digital euro issuance readiness in 2029, subject to regulation.
Bermuda Monetary Authority outlines activity based regulatory framework and licensing exemptions for asset tokenisation
The Bermuda Monetary Authority has issued a stakeholder letter on feedback to its November 2025 asset tokenisation discussion paper and initial policy direction ahead of an April 2026 consultation. It proposes an activity-based, technology-neutral framework under the Digital Assets Business Act 2018, with a functional, role-based perimeter, stronger custody, governance and disclosure standards, extended AML/ATF guidance, and independent smart contract audit and operational resilience requirements. The Authority will also clarify the regulatory taxonomy via a new “tokenised investments” definition, harmonise the Investment Business Act 2003 and Digital Asset Issuance Act 2020 through integrated exemptions, and work with national stakeholders on legislative changes, including recognising distributed ledger technology-based registers.
Arab Monetary Fund convenes 32nd Arab Committee meeting on payment and settlement systems with focus on instant and cross-border payments
The Arab Monetary Fund opened the 32nd meeting of the Arab Committee on Payment and Settlement Systems, held virtually with Arab central banks and international institutions, to review developments in payment systems amid accelerating digitalisation. Participants discussed instant and cross-border payments, remittances, and regulatory and supervisory issues including Buy Now, Pay Later, cybersecurity, strong customer authentication, asset tokenization, digital asset-based infrastructures, and use of artificial intelligence in oversight.
World Federation of Exchanges announces 2026 priorities on tokenisation, CCP resilience and 24/7 trading
The World Federation of Exchanges (WFE) has outlined its 2026 focus areas for exchanges and central counterparties, emphasizing market structure, investor protection, and infrastructure resilience. Key initiatives include examining the evolving roles of exchanges and CCPs, tokenisation, crypto assets, and market design implications. The agenda also addresses investor protection, market transparency, clearing and settlement, and the operational impacts of extended trading hours.
U.S. House Financial Services Committee holds full committee hearing on asset tokenization’s regulatory implications for capital markets
The U.S. House Financial Services Committee held a hearing on asset tokenization's impact on capital markets, focusing on regulatory implications and balancing innovation with investor protection and market integrity. Chairman French Hill emphasized tokenization's potential benefits, like increased efficiency and transparency, while questioning current securities laws' adequacy. The hearing aimed to identify regulatory gaps and inefficiencies that could risk or hinder market integrity and capital formation.
Reserve Bank of Australia foreshadows Project Acacia findings and plans DFMI sandbox and exchange settlement account access review
The Reserve Bank of Australia (RBA) outlined findings from Project Acacia, emphasizing tokenisation's future role in enhancing efficiency and reducing risk in Australia's financial system. The project tested 20 use cases with regulatory relief, highlighting potential economy-wide gains of AUD 24 billion annually, while addressing challenges like legal uncertainty and interoperability. The RBA plans further exploration of digital financial market infrastructure and policy reviews, alongside new industry forums to advance tokenisation and modernize the Reserve Information and Transfer System (RITS).
Norges Bank publishes four reports on digital central bank money and maintains there is no current case for issuance
Norges Bank released four reports on digital central bank money (DSP), concluding there's no current basis to introduce DSP in Norway, though it may become relevant later. The reports cover final project phase 5 findings, a digital euro's impact on Norway, experimental testing results, and analysis of tokenised bank deposits and wholesale Central Bank Digital Currency (CBDC). Further work will focus on tokenisation and DSP forms, including technology testing and collaboration with payment system participants.
Council of Financial Regulators flags elevated geopolitical and cyber risks and agrees 2026 crisis preparedness workplan
The Council of Financial Regulators said global financial stability risks have increased, while direct Australian exposures to the Middle East remain limited. It urged banks to maintain strong capital and liquidity, called for prudent lending standards, and agreed a workplan to strengthen crisis preparedness for capital and liquidity stress scenarios. The Council also advanced joint work on cyber resilience and said it will publish actions to streamline regulatory data collection and sharing in the first half of 2026.
European Central Bank sets out Pontes launch in Q3 2026 and Appia roadmap to scale tokenised financial markets
European Central Bank Executive Board member Piero Cipollone detailed the Eurosystem’s strategy for Europe’s tokenised capital markets, emphasizing central bank money settlement on DLT and a European tokenised financial ecosystem blueprint. Cipollone addressed market fragmentation and the absence of a common on-chain settlement asset, highlighting Pontes and Appia as key programmes. Pontes will connect market DLT platforms with existing services by 2026, while Appia aims to provide a comprehensive blueprint by 2028, with public consultation ongoing.
World Federation of Exchanges urges the Basel Committee to revise bank cryptoasset prudential standards to reflect technology neutrality
The World Federation of Exchanges (WFE) is concerned about the Basel Committee on Banking Supervision's review of prudential standards for banks' cryptoasset exposures, which may constrain tokenisation growth in regulated markets. The WFE advocates for technology neutrality and consistent treatment of assets with similar risk profiles, regardless of form, and calls for a clearer definition of cryptoassets. It also seeks clarification on custody-related capital requirements to prevent deterring banks from offering custody services.
Government of Jersey's Financial Services Unit launches Time to Win action plan to grow the financial and related professional services sector backed by GBP 30m competitiveness funding
The Government of Jersey has unveiled "Time to Win," a growth strategy for the financial and professional services sector, backed by GBP 30 million from the 2026–2029 Budget. The plan emphasizes a stable tax regime, reducing business costs, enhancing market promotion, and advancing digital innovation, including tokenisation. Recommendations from an independent panel chaired by Sir Howard Davies informed the strategy.
Bank of France, French Financial Markets Authority and Directorate General of the Treasury launch strategic group to advance tokenised finance
The Bank of France, the French Financial Markets Authority, and the Directorate General of the Treasury have formed a group to advance distributed ledger technology (DLT) in financial markets, enhancing financing for the French and European economy. Led by Denis Beau, Christophe Bories, and Sébastien Raspiller, the group will focus on private tokenised settlement assets, tokenisation of financial instruments, and DLT-based market infrastructures. A report with technical analysis and recommendations is expected in summer 2026, supporting the planned release of a wholesale euro central bank digital currency by autumn 2026.
U.S. Securities and Exchange Commission Commissioner Peirce flags staff work on a narrow innovation exemption for tokenized securities and presses for disclosure and fund proxy voting reforms
SEC Commissioner Hester M. Peirce, addressing the Investor Advisory Committee, advocated for simplifying public company disclosures and addressing fund proxy voting frictions, while supporting securities tokenization. She highlighted the need for an innovation exemption for limited trading of tokenized securities and questioned existing issuer disclosures' adequacy. Peirce also discussed challenges with the Investment Company Act of 1940 quorum standard and emphasized proxy voting authority's importance in serving the fund's interest.