The European Central Bank, the European Commission, and the European Securities and Markets Authority have opened applications for a new industry-led group. The European Tokenisation Standards Group (ETSG) will focus on creating common standards for the holding and settlement of tokenized securities.
Eligible applicants include private firms, global institutions, fintech companies, and industry associations based in the EU. Interested parties must submit their nominations by November 27, 2026. The three European institutions will oversee the process as observers, with the group's work scheduled to commence in January 2027.
The primary objective of the ETSG is to develop technical and market standards that facilitate the interoperability of tokenized securities across various distributed ledger technology platforms. These efforts aim to ensure that new systems can effectively integrate with existing financial infrastructure.
The group is expected to deliver an initial set of standards by early 2028. This initiative is designed to support Appia, the Eurosystem’s project for creating a blueprint for tokenized financial markets in Europe. Authorities noted that fragmentation remains a key challenge that could hinder the adoption of tokenization.
The development of these standards follows the launch of the Pontes system by the Eurosystem in September. This platform enables financial institutions to conduct wholesale settlements of tokenized assets using central bank money.
