Europe risks losing competitiveness as delays in the DLT Pilot Regime could push liquidity and near-instant settlement advances toward the United States, where tokenization is rapidly progressing.

A coalition of firms including Securitize, 21X, Boerse Stuttgart Group, Lise, OpenBrick, STX and Axiology calls for a targeted, fast technical update to expand eligible assets, raise issuance caps, and remove the six-year pilot license cap while maintaining investor protections.

The proposed fixes advocate broadening the asset scope, lifting issuance caps, and eliminating the six-year license limit through a standalone technical update, avoiding a broad reopening of market reforms.

The signatories urge policymakers to act quickly to prevent Europe from repeating past capital markets mistakes and to preserve its lead in the next phase of digital asset infrastructure and global financial competition.

A consortium of European tokenization operators urges EU policymakers to amend the DLT Pilot Regime to enable scaling of regulated on-chain markets, arguing current asset limits, volume caps, and six-year licenses hinder growth.

EU tokenization operators reiterate that amending the DLT Pilot Regime is needed to scale regulated on-chain markets, asserting that current limits suppress growth.

Eight EU-regulated digital asset firms—Securitize, 21X, Boerse Stuttgart Group's Seturion, Central Securities Depository, Lise, OpenBrick, STX and Axiology—warn that regulatory limits could turn Europe into a “success trap” as the U.S. advances tokenized settlement and market digitization.

Tokenization converts real-world assets into blockchain-based tokens, potentially boosting settlement speed, transparency and fractional ownership, with potential market value reaching trillions in the coming years.

Without changes such as expanding eligible assets, raising the transaction cap to the hundreds of billions, and removing the six-year limit, the U.S. could maintain a multi-year lead in tokenized markets, drawing global liquidity away from Europe and harming the euro’s competitiveness.

European blockchain firms urge the EU to accelerate reforms to the DLT Pilot Regime to avoid losing leadership in tokenization to the United States.

US regulators and exchanges, including the SEC, DTCC, Nasdaq and NYSE, are advancing tokenization with guidance and services aimed at near-instant settlement and 24/7 trading, signaling tokenized assets within traditional market infrastructure.

The US approach shows tokenized securities can be issued, custodied, and settled within existing regulatory frameworks, indicating tokenization as part of standard market infrastructure rather than a new asset class.