The European Central Bank, European Commission and ESMA have created the European Tokenisation Standards Group to develop common rules for holding and settling tokenized securities by early 2028.
The European Central Bank, the European Commission and the European Securities and Markets Authority announced the creation of the European Tokenisation Standards Group (ETSG), a joint industry initiative aimed at developing common rules for holding and settling tokenized securities across the continent. Applications to join the group are open until Nov. 27, 2026, and the first standards are expected by early 2028.
According to the European Commission’s Nov. 9 announcement, the ETSG will focus on harmonising technical and market practices for tokenised financial instruments on distributed‑ledger technology (DLT) platforms and their interaction with existing financial infrastructure. The group will examine current European and international standards, identify gaps, and draft new technical requirements that address ownership recording, transaction information exchange and securities transfer processes.
The initiative invites European industry associations, private firms, international financial institutions, fintech companies and technical service providers with a European presence to apply. Applicants must demonstrate experience in financial‑market standards and commit resources to the group’s work. The three regulators will act as observers, while industry representatives will appoint a chair and co‑chair; a regulator will serve as secretary.
The ETSG’s work is tied to the ECB’s Appia project, launched in March 2026, which seeks an integrated framework for tokenised markets using central‑bank money. Appia already powers the Pontes settlement service that links blockchain platforms with the Eurosystem’s TARGET system, with early participants such as Deutsche Bank, Santander and Clearstream. The forthcoming standards are intended to support Appia’s goal of asset interoperability and to align with the European Commission’s Market Integration and Supervision Package, which proposes amendments to the EU’s DLT Pilot Regime.
Key upcoming milestones include the ETSG’s kickoff meeting in January 2027, the publication of its first draft standards in early 2028, and any legislative changes to the DLT Pilot Regime that could make the standards mandatory. Observers will also monitor how quickly major banks and blockchain providers adopt the new framework and whether the standards influence tokenisation projects beyond the Eurozone.
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