Nasdaq and Boerse Stuttgart Want the EU's Tokenisation Cap Gone

What happened

Nasdaq and Boerse Stuttgart, along with other securities firms and fintech groups, asked the European Union to remove or sharply raise a proposed cap on tokenised securities, suggesting it be lifted to at least one point five trillion euros.

Confirmed

Global impact / market context

If the cap is raised, companies could issue more tokenised securities, which are digital versions of traditional investments like stocks or bonds. This could increase capital spending and investment opportunities, as firms would have more room to raise funds through these digital assets.

Analyst inference

The EU's proposed cap is part of its pilot regime for distributed ledger technology, which is a digital recordkeeping system. Raising the cap could signal regulatory support for blockchain-based finance, potentially drawing more issuers and investors into the EU's digital asset market.

Analyst inference

What to watch

1. Watch whether the EU formally agrees to remove or raise the €100 billion cap, as requested by Nasdaq and Boerse Stuttgart. Any decision would directly affect the scope of tokenised securities allowed in the region. Confirmed
2. Consider that the EU might propose a new cap level below one point five trillion euros but above one hundred billion euros, as a compromise to address concerns about market stability while still encouraging innovation. Proposed
3. Monitor if other securities firms and fintech associations join the request, as broader industry support could increase pressure on the EU to act, potentially accelerating the timeline for a revised cap. Analyst inference

Evidence

• coinpaprika.com