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 & Exchange Commission Commissioner Peirce spotlights municipal securities tokenization and urges modernization of recordkeeping rules
SEC Commissioner Hester M. Peirce emphasized tokenization as transformative for the municipal securities market, urging early SEC engagement on new technologies and advocating modernized recordkeeping. She cited benefits like atomic settlement and improved liquidity, referencing Quincy, Massachusetts’ 2024 tokenized offering, while cautioning against assuming widespread adoption due to market complexities.
Thailand Securities and Exchange Commission unveils 2026–2028 strategic plan focused on competitiveness, digital markets and sustainable finance
The Thailand Securities and Exchange Commission has released its 2026–2028 strategic plan, focusing on enhancing capital market competitiveness, digital and technology-led development, and sustainability. Key priorities include improving fundraising and corporate governance, advancing technology-enabled supervision, developing a digital capital market ecosystem, and aligning sustainability efforts with international standards.
Germany's Ministry of Finance agrees with France to implement the FIVE scale-up financing roadmap and sets up a joint digital finance taskforce
Germany's Ministry of Finance and France's Ministry for Economy and Finance agreed on a Franco-German roadmap to enhance late-stage growth capital for European scale-ups, linking this to broader EU capital market integration. Initiatives include connecting institutional investors with venture capital, backing the European Tech Champions Initiative 2.0, harmonizing stock option tax treatment, and exploring digital finance advancements, with a report due in the second half of 2026.
Prudential Regulation Authority sets 2026 supervisory priorities for UK deposit takers and plans wider shift to two-year periodic summary meeting cycles
The Prudential Regulation Authority has written to CEOs of PRA-regulated UK banks and building societies setting out its 2026 supervisory priorities, emphasising strategic risk management, operational and financial resilience, data risk, and support for innovation aligned with its secondary objectives on competition, international competitiveness and growth. Key expectations include enhanced oversight of changing risk profiles, implementation of updated significant risk transfer and model risk management standards, strengthened operational resilience and cyber preparedness, and preparation for Basel 3.1 and the Strong and Simple Framework. The PRA will also rebase variable Pillar 2 requirements in 2026 and continue modernising reporting and authorisation processes.
United Kingdom's Prudential Regulation Authority sets 2026 supervisory priorities for UK-active international banks and plans move to two-year PSM cycle
The Prudential Regulation Authority has written to chief executives of PRA-regulated international banks and designated investment firms in the UK setting out its 2026 supervisory priorities, emphasising risk management and governance, operational and financial resilience, and data risk, while adjusting supervision to support innovation and reduce regulatory burden. Key expectations include stronger counterparty credit and model risk management, prudent adoption of technologies such as artificial intelligence and distributed ledger technology, enhanced operational resilience and cyber capabilities, and preparations for Basel 3.1 and the Strong and Simple Framework. The PRA will also move remaining firms from annual to two-year Periodic Summary Meeting cycles in 2026 and is encouraging engagement on streamlined reporting and regulatory permissions ahead of capital regime changes.
South Korea Financial Services Commission announces National Assembly passage of amendments enabling security token issuance and circulation
South Korea's Financial Services Commission announced that the National Assembly approved amendments to establish a legal framework for tokenized securities on a blockchain-based ledger. Effective January 2027, the laws recognize distributed ledgers as securities registries and maintain security tokens within existing regulations. A consultative body will begin in February 2026 to address technology, infrastructure, and regulatory rules.
Securities and Exchange Board of India forms working group to develop 5-year and 10-year technology roadmap for market infrastructure institutions
The Securities and Exchange Board of India has established a Working Group to develop five-year and ten-year technology roadmaps for Market Infrastructure Institutions, addressing emerging technologies such as artificial intelligence, distributed ledger, and quantum-safe systems. The initiative, chaired by Dr. D.B. Phatak, aims to enhance market operations, surveillance, risk management, investor protection, and regulatory oversight.