European Coalition Calls for Increased Cap on Tokenized Financial Instruments
- A coalition of financial and tokenization groups has requested the EU to raise the proposed cap on tokenized instruments from €100 billion ($116.3 billion) to at least €500 billion.
- Signatories of the letter include Nasdaq, Boerse Stuttgart Group, Securitize, and the European Ethereum Institute.
- Current European projects reportedly reach a market scale of €350 billion, indicating that the proposed cap is insufficient for growth.
- The EU’s current limit is set to increase from €6 billion as part of its Market Integration and Supervision Package.
- In contrast, U.S. markets allow tokenization without volume caps, potentially covering assets worth up to €150 trillion.
The push for a higher cap follows months of advocacy from industry players who argue that existing limits hinder the scaling of regulated on-chain markets in Europe. The total value of distributed real-world assets (RWA) currently stands at approximately $39.15 billion.
With existing European projects nearing €350 billion in scale, raising the cap is crucial for future growth in tokenized financial instruments.(Source)
