The European Fund and Asset Management Association (EFAMA) is calling for guidance about the use of stablecoins in connection with UCITS funds. It also wants to see changes in the DLT Pilot Regime.
“A great number of European firms from across the value chain have made impressive investments in DLT, and are leading the financial sector in the digital transition,” said Tanguy Van de Werve, EFAMA Director General. “These efforts should be matched at the highest political level with a clear commitment from EU authorities to deliver on a DLT-based ecosystem. Piecemeal changes, weighed down by lengthy legislative processes, will not give the market the necessary signals for further investments.”
EFAMA notes that if an asset manager is to buy tokenized bonds, stocks or other assets, they ideally want to use stablecoins for settlement. Currently, they have to go via a custodian bank who either settles in another manner or buys the stablecoins to make the settlement. Enforcing this extra step is inefficient.
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