EU tokenization firms urge quick DLT Pilot fixes to avoid US market migration
A coalition of European tokenization and market infrastructure firms — including Securitize, 21X, Boerse Stuttgart Group, Lise, OpenBrick, STX and Axiology — has asked EU lawmakers for an urgent, narrow technical amendment to the DLT Pilot Regime. The group warns current limits on eligible assets, issuance caps and a six‑year licence ceiling are constraining the scaling of regulated on‑chain markets in the EU and could drive tokenized liquidity and listings to the US. They proposed raising issuance caps substantially, removing asset‑type restrictions and eliminating the six‑year pilot licence limit while preserving investor protections. The appeal follows fast‑moving US regulatory and market developments — SEC guidance on custody and issuer‑tokenized vs third‑party tokenized securities, a DTCC no‑action letter enabling tokenized settlement, and Nasdaq/NYSE initiatives for 24/7 tokenized trading and faster settlement — that together could enable near‑instant (T+0) settlement and industrial‑scale tokenization by 2026. The firms argue Europe’s broader Market Integration and Supervision Package will take until around 2030 to fully apply, increasing the risk of a permanent shift of tokenized real‑world asset liquidity to US venues. For crypto traders, the main takeaways are: potential regulatory-driven migration of tokenized liquidity to US markets (affecting access, spreads and cross‑border flows), likely short‑term legislative pressure in the EU for targeted DLT Pilot fixes, and continued US progress that may accelerate institutional adoption and settlement efficiency. Keywords: DLT Pilot Regime, tokenization, tokenized assets, EU regulation, T+0 settlement, DTCC, SEC.
Neutral
The news is neutral for crypto price direction because it concerns regulatory and market‑structure competition between jurisdictions rather than a direct protocol upgrade or token issuance that would immediately affect token prices. Short term: traders may see shifts in liquidity and trading patterns for tokenized real‑world assets as firms and listings respond to regulatory signals — this can cause localized volatility in tokenized asset markets and trading venues. Mid-to-long term: if the US captures scale and liquidity for tokenized assets, trading volumes and product availability could concentrate in US venues, potentially benefiting US-listed token projects and platforms while reducing market depth for EU venues. For native tokens referenced indirectly (tokenization platforms or exchange tokens), outcomes depend on which jurisdiction hosts listings and settlement rails; some tokens could gain volume (bullish) while others lose flow (bearish). Overall, the announcement signals regulatory pressure and competitive shifts that are important for market structure and liquidity but do not by themselves create a clear directional price catalyst across crypto markets.