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
New Zealand Financial Markets Authority expands FinTech sandbox pilot and pursues an on-ramp restricted licence for innovative firms
The New Zealand Financial Markets Authority (FMA) plans to expand its FinTech sandbox pilot by introducing a restricted licence to facilitate market entry for innovative firms. The pilot revealed pathways to market for four of six participating firms and provided insights into innovation-related benefits and regulatory gaps. The FMA also published feedback on its tokenisation discussion paper, noting benefits like increased liquidity and risks such as cyber security and legal uncertainty.
European Central Bank publishes Appia roadmap and plans Q3 2026 Pontes link to settle DLT wholesale transactions in central bank money
ECB Executive Board member Piero Cipollone outlined the Eurosystem’s Pontes and Appia initiatives for safe settlement of tokenised wholesale transactions in euro central bank money. Pontes will link TARGET Services to distributed ledger technology platforms by Q3 2026, while Appia will create next-generation European financial infrastructure through public-private collaboration. The roadmap will enhance Pontes and support market-led infrastructure solutions.
U.S. Securities and Exchange Commission chair signals disclosure burden rationalization and a forthcoming innovation exemption for tokenized securities
SEC Chairman Paul S. Atkins, at the Investor Advisory Committee meeting, emphasized reducing disclosure burdens and proposed an innovation exemption for limited trading of tokenized equity securities. He advocated for a "minimum effective dose of regulation," focusing on materiality and scaling requirements to company size and maturity, and suggested extending the JOBS Act "IPO on-ramp" duration. The SEC is also exploring modernization approaches for shareholder-meeting quorums amid evolving retail voting patterns and account structures.
European Securities and Markets Authority warns of elevated systemic stress risks in its first 2026 risk monitoring report
The European Securities and Markets Authority (ESMA) released its first 2026 risk monitoring report, indicating high market and systemic stress risks in EU financial markets despite resilient late 2025 performance. The report highlights potential significant price swings due to geopolitical tensions, stretched equity valuations, and an uncertain EU economic outlook, with increased contagion risk from higher cross-asset correlations and cyber threats. It also notes record-high global equity valuations, mixed credit-quality signals, persistent weakness in EU equity issuance, a crypto flash crash, and settlement-fail spikes at central securities depositories.
European Central Bank publishes Appia roadmap to shape a European tokenised wholesale ecosystem anchored in central bank money
The European Central Bank has released a roadmap for Appia, a strategic initiative to develop a European tokenised financial ecosystem centered on central bank money. This initiative, alongside the Pontes DLT solution set for 2026, aims to support integrated tokenised wholesale financial markets in Europe. The roadmap will guide the creation of tokenised market infrastructures and services, with a blueprint expected in 2028.
Indonesia's Financial Services Authority launches 2026–2031 roadmap to develop and strengthen the national bullion ecosystem
Indonesia's Financial Services Authority (OJK) has launched the 2026–2031 Roadmap to bolster the national bullion market and financial sector. It includes initiatives like gold exchange-traded funds and regulations under the 2023 Financial Sector Development and Strengthening Law. Key developments include a gold tokenisation trial and Sharia-compliant bullion activities, with significant gold holdings by PT Pegadaian and PT Bank Syariah Indonesia Tbk.
China Securities Regulatory Commission previews ChiNext reform and refinancing overhaul under its 15th Five-Year capital market agenda
At a National People’s Congress press conference, China Securities Regulatory Commission Chair Wu Qing outlined priorities for the 15th Five-Year Plan, focusing on market-stabilisation, innovation financing, and investor protection. Near-term measures include ChiNext board reform and optimisation of listed-company refinancing rules. Supervisory priorities involve cross-market risk monitoring, financial fraud prevention, and regulation of new business models like crypto assets and high-frequency trading.
Bank of Canada completes Project Samara as Export Development Canada issues Canada’s first tokenized bond settled in wholesale central bank deposits
The Bank of Canada, Export Development Canada, RBC, and TD completed Project Samara, testing tokenization and distributed ledger technology (DLT) for bond issuance and settlement. It featured Canada's first tokenized bond, settled in wholesale central bank deposits on the Samara Platform, enhancing operational efficiency and data integrity. Despite benefits, challenges like increased system complexity and regulatory frictions were noted, with findings detailed in the Project Samara Research Paper.
Ontario Securities Commission, Quebec Autorité des marchés financiers and Canadian Investment Regulatory Organization approve Project Samara pilot for tokenized Export Development Canada bonds settled in Bank of Canada wholesale digital Canadian dollars
The Ontario Securities Commission, Quebec’s Autorité des marchés financiers, and the Canadian Investment Regulatory Organization have approved Project Samara, testing distributed ledger technology for bond issuance, trading, and settlement using digital Canadian dollars. Involving RBC Dominion Securities, TD Securities, the Bank of Canada, and Export Development Canada, RBC operates the platform. A research report will be published, while the Canadian Securities Administrators have launched a "Project Tokenization" theme in the CSA Collaboratory.
Greece's Ministry of National Economy and Finance sets out digital finance agenda and a digital euro roadmap towards possible 2029 adoption
Greece's Ministry of National Economy and Finance published a speech by Minister Kyriakos Pierrakakis at the European Investment Bank Group Forum 2026, emphasizing Europe's competitiveness agenda linked to the Savings and Investment Union and digital finance modernization. He highlighted the potential of distributed ledger technologies and tokenisation to enhance financial-market infrastructure and flagged risks associated with crypto-assets and systemic cyber threats. On the digital euro, he noted progress towards technical development, with a legislative framework expected in 2026 and a pilot in 2027.
South Korea Financial Services Commission launches private-public consultative body to shape security token rules and infrastructure ahead of February 2027 law
The South Korea Financial Services Commission has launched a consultative body to develop rules and market infrastructure for the amended security token framework effective February 2027. The initiative aims to create a scalable digital finance ecosystem, reassess investor protection under the Financial Investment Services and Capital Markets Act, and prepare for future payment and settlement arrangements. The body will operate through four subdivisions with private-sector support, engaging in intensive discussions throughout 2026.
Dubai Virtual Assets Regulatory Authority confirms Phase 1 completion of the Real Estate Tokenisation Pilot and warns against unapproved marketing claims
The Dubai Virtual Assets Regulatory Authority (VARA) issued an alert about market communications on Dubai’s Real Estate Tokenisation Pilot, emphasizing that tokenised real estate offerings need regulatory approval. The pilot is in a controlled testing phase, focusing on secondary-market mechanisms and future expansion. VARA warned against unauthorized promotional claims and advised relying on official communications and verification through VARA’s Public Register.
International Swaps and Derivatives Association sets out tokenized collateral documentation work and timeline for 2026 FX Definitions
ISDA General Counsel Katherine Tew Darras, at ISDA’s Annual Legal Forum, emphasized priorities on tokenized assets as margin collateral for non-cleared derivatives and the upcoming 2026 FX Definitions. ISDA is advancing tokenized collateral models and collaborating with Global Digital Finance, while the 2026 FX Definitions will be published in March 2026, with a two-year market implementation period.
Bank Negara Malaysia onboards three Digital Asset Innovation Hub initiatives to test ringgit stablecoins and tokenised deposits
Bank Negara Malaysia's Digital Asset Innovation Hub has onboarded three initiatives for 2026 to test ringgit stablecoins and tokenised deposits in wholesale payment use cases, focusing on domestic and cross-border transactions. The testing aims to assess monetary and financial stability implications and may inform future integration with wholesale central bank digital currency efforts.
China Securities Regulatory Commission joins multi agency notice classifying unauthorized RWA tokenization as illegal and tightening virtual currency curbs
The China Securities Regulatory Commission joined a multi agency notice that classifies virtual currency activity and unauthorized real world asset tokenization as illegal financial activity in China. The measures ban most onshore services, restrict offshore activity involving domestic parties, and tighten obligations on banks, payment firms, internet platforms and other service providers. The notice applies immediately and replaces the 2021 virtual currency risk notice.
China Securities Regulatory Commission joins eight-agency notice reaffirming the ban on virtual currency activities and tightening oversight of real-world asset tokenization
The China Securities Regulatory Commission joined seven other authorities in issuing a revised notice that keeps virtual currency business in China classified as illegal financial activity and extends the framework to real-world asset tokenization. The notice also bars unapproved offshore issuance of virtual currencies by domestic entities, prohibits unapproved offshore issuance of renminbi-pegged stablecoins, and subjects offshore tokenization of domestic assets to approval, filing and compliance requirements.
China Securities Regulatory Commission joins multi-agency move barring RMB-pegged stablecoins and tightening controls on virtual currency and RWA tokenization
The China Securities Regulatory Commission, with the People’s Bank of China and others, issued a notice reinforcing that virtual currency-related activities are illegal in China and imposing stricter controls on tokenization and RMB-pegged stablecoins. Effective immediately, it prohibits unauthorized tokenization, restricts financial institutions from engaging with virtual currencies, and tightens governance on overseas activities by domestic entities, while repealing the 2021 notice on virtual currency speculation.
People's Bank of China and China Securities Regulatory Commission issue updated notice to curb virtual currency activity and real-world asset tokenization risks
The People's Bank of China, the China Securities Regulatory Commission, and other agencies updated the framework for managing risks associated with virtual currencies and tokenization of real-world assets, reiterating that virtual currency-related activities are illegal in China. The notice prohibits overseas entities from providing virtual currency services to domestic entities, mandates approvals for RMB-pegged stablecoins and RWA tokenization, and emphasizes central-local coordination for risk management and compliance.
Astana Financial Services Authority sets out 2026 AIFC regulatory development plan and previews possible reforms for 2027–2028
The Astana Financial Services Authority outlined its 2026 plans to refine the Astana International Financial Centre regulatory framework, focusing on asset management, FinTech, insurance, and Islamic finance, with further enhancements planned for 2027–2028. Public consultations and market feedback will guide developments, including updates to the Recognition Framework, Tokenisation Framework, and guidance on fitness and propriety.
US Securities and Exchange Commission chair outlines disclosure streamlining, foreign issuer rule review and joint Project Crypto work with the CFTC
SEC Chairman Paul S. Atkins outlined a policy agenda at AFME’s Annual Financial Services Policy Dinner to reduce regulatory friction in US capital markets, update the foreign issuer regime, and advance on-chain market infrastructure through "Project Crypto" with the Commodity Futures Trading Commission. The SEC aims to simplify disclosure requirements, refocus shareholder meetings, reform litigation, address international standard-setting challenges, and enhance cross-border regulatory cooperation.
European Central Bank Banking Supervision sets out 2026 supervisory priorities for AI governance, tokenisation and operational resilience
In a keynote speech, Patrick Montagner of European Central Bank Banking Supervision emphasized aligning digital transformation with governance and risk controls, particularly in AI and tokenisation. He highlighted AI-specific risk management shortcomings and concentration risks from non-EU providers, stressing the importance of the Digital Operational Resilience Act for unified incident reporting. The ECB plans to focus on generative AI, third-party dependencies, and operational resilience in 2026.
U.S. Securities and Exchange Commission staff issues statement outlining taxonomy and securities law considerations for tokenized securities
The U.S. SEC staff clarified that tokenized securities, despite being on crypto networks, remain subject to federal securities laws, including Securities Act registration. The statement outlines issuer and third-party tokenization models, emphasizing that tokenized security-based swaps require registration and must occur on a national securities exchange.
The Securities and Exchange Commission, Thailand launches public hearing on amendments to Tokenized Fund sale and redemption rules
The Securities and Exchange Commission, Thailand has initiated a public consultation on proposed amendments to regulations for the sale and redemption of mutual fund units in tokenized form, aiming to enhance transaction speed and regulatory clarity. The proposals include defining "Tokenized Fund," setting compliance standards, and allowing timeframe exemptions for adjusting investment units, with the consultation open until 11 February 2026.
Securities and Exchange Commission Ghana finalising a virtual asset regulatory sandbox ahead of opening VASP licensing applications
The Securities and Exchange Commission Ghana is finalizing a regulatory sandbox framework for Virtual Asset Service Providers under the Virtual Asset Service Providers Act, 2025, to test innovative virtual asset products and services. The sandbox aims to support investor protection and market integrity, with lessons from the pilot phase informing future policy and licensing frameworks.
U.S. Securities and Exchange Commission sets Trading and Markets priorities to build tokenized securities access, harmonize with the CFTC, support 24-by-7 equities and modernize legacy rules
The SEC’s Division of Trading and Markets, under Chairman Atkins, announced a three-year agenda to create a framework for tokenized securities, harmonize rules with the CFTC, support 24/7 equity markets, and modernize rules to enhance efficiency and reduce costs. Key initiatives include advancing rulemaking for tokenized securities, collaborating with self-regulatory organizations, and improving the Consolidated Audit Trail and National Market System.