The European Central Bank (ECB), ESMA and the European Commission have launched the European Tokenisation Standards Group (ETSG), and are inviting market participants to join by November 27. Currently there is extensive fragmentation in the tokenization sector and common standards will help to address that.
The group’s work also fits in with multiple EU initiatives. The DLT Pilot Regime was initiated by the European Commission, and in December 2025 several major upgrades were proposed as part of the Market Integration and Supervision Package, which is working through the legislative process. One of the amendments requires the creation of industry standards to prevent fragmentation in distributed ledger operations in post trade.
Separately, the ECB has launched its Pontes DLT settlement solution and is working on the more ambitious Appia project. The first building block on the Appia roadmap also involves the development of standards and asset interoperability. The ETSG aims to deliver the standards by early 2028 in line with the Appia blueprint which is due the same year.
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