What's new
Overview
This dossiers provides on overview of the direction of tokenization efforts including insights from major public-sector led project initiatives and jurisdictional pilots and sandboxes as well as the emerging regulatory framework for tokenization and key associated policy questions.
What's new
Brazil Securities Commission reviews September actions, including tokenization pilot proposal and more than BRL 200 million in fines
The Brazil Securities Commission reviewed its September actions, including completion of a proposed tokenization pilot and new guidance for auditors, public offerings and receivables investment funds. Enforcement measures included more than BRL 200 million in fines in a Banco Master case and a settlement exceeding BRL 2.3 million involving the current TC S.A.
South Korea Financial Services Commission consults on tokenized securities rules for February 2027 rollout
The South Korea Financial Services Commission is consulting on implementing rules for the tokenized securities framework due to take effect on Feb. 4, 2027. The proposals set eligible securities, distributed ledger conditions and a KRW 4 billion capital requirement for issuer account managers. They also establish an over-the-counter license category for debt securities and cap each retail investor’s annual net purchases at KRW 100 million per venue.
Ukraine's National Securities and Stock Market Commission and International Finance Corporation agree support for tokenization and securitization rules through 2029
Ukraine's National Securities and Stock Market Commission and the International Finance Corporation have agreed to develop regulatory frameworks for tokenized assets, securitization and other digital capital market instruments through 2029. The work will include regulatory gap analysis, drafting support, practical market guidance and staff training, with investor protection incorporated into the new approaches.
South Korea Financial Services Commission discusses tokenized securities and T+1 settlement with Nasdaq, DTCC and HKEX
South Korea Financial Services Commission Chairman Lee Eog-weon discussed tokenized securities, T+1 settlement and market competitiveness with Nasdaq, DTCC and HKEX. The talks informed South Korea’s preparations for its February 2027 tokenized securities framework and highlighted the need for institutional coordination and extended planning for settlement reform. Nasdaq also shared experience with market segmentation, delistings and exchange traded products.
International Swaps and Derivatives Association develops tokenized collateral proof of concept to support continuous trading
The International Swaps and Derivatives Association is developing a proof of concept for exchanging tokenized collateral under its documentation, including potential updates to credit support documents and legal opinions. The work is intended to enable continuous margin movement for 24/7 trading, but requires regulatory and legal clarity on custody, capital treatment and cross-border recognition.
Commodity Futures Trading Commission updates crypto FAQs on tokenized customer-fund investments and blockchain recordkeeping
The Commodity Futures Trading Commission updated its crypto FAQs to address tokenized forms of permitted customer-fund investments and the use of blockchain technology for registrant recordkeeping.
European Securities and Markets Authority announces 2027 digital innovation supervisory priority focused on AI and tokenisation
The European Securities and Markets Authority will begin a digital innovation supervisory priority in 2027, initially focusing on supervised entities’ use of AI and tokenisation. Authorities will map client facing uses, build common supervisory approaches and conduct initial checks on selected firms. The initiative will operate alongside the continuing cyber and operational resilience priority as the ESG disclosures priority closes.
Financial Conduct Authority signals joint tokenisation roadmap and consultation on asset safeguards
Financial Conduct Authority Chief Executive Nikhil Rathi called for wholesale tokenisation to move from pilots to adoption at scale. An upcoming joint roadmap with the Bank of England will set out the transition to established market infrastructure, while the FCA intends to consult on safeguards for relevant tokenised investment assets. Industry feedback highlighted opportunities in post-trade processes and obstacles involving settlement, interoperability and regulatory accountability.
Hong Kong Securities and Futures Commission unveils multiyear capital markets action plan spanning RMB markets, connectivity and digital assets
The Hong Kong Securities and Futures Commission has launched a multiyear action plan covering renminbi markets, cross-border connectivity, market infrastructure, digital assets and financial security. Near-term measures include a renminbi counter for southbound Stock Connect, work on REIT Connect, T+1 settlement and new digital asset licensing regimes. Longer-term plans would broaden renminbi products, tokenized investments and technology-enabled supervision.
Danish Financial Supervisory Authority sets 2030 technology agenda for AI, quantum risks, tokenization and innovation
The Danish Financial Supervisory Authority has set a technology agenda through 2030 covering AI, quantum technology, tokenization and financial innovation. It will assess emerging risks, clarify existing requirements and consider expanding its FT Lab regulatory sandbox, with the aim of supporting innovation without adding unnecessary rules or weakening financial stability and customer protections.
Commodity Futures Trading Commission Chairman directs rulebook changes for cleared repo and outlines market modernization agenda
Commodity Futures Trading Commission Chairman Michael S. Selig directed staff to prepare rulebook changes permitting futures commission merchants to conduct cleared repo transactions involving customer funds before the June 2027 Treasury repo clearing deadline. He also called for more integrated oversight of Treasury cash and derivatives markets and continued work on cross-margining and capital treatment. Future policy will address tokenized collateral, stablecoins and product-specific safeguards for any expansion of 24/7 trading.
European Central Bank Banking Supervision calls for board oversight of bank digital strategies and stronger risk safeguards
European Central Bank Supervisory Board Chair Claudia Buch called for board oversight, multiyear investment and strong risk controls as banks expand their use of artificial intelligence, cloud services and tokenisation. Supervision will focus on common cyber, outsourcing and data vulnerabilities while holding banks accountable for automated decisions. Buch also backed integrated European markets and interoperable public infrastructure without weakening prudential standards.
European Central Bank calls for stronger MiCAR stablecoin safeguards and EU level crypto supervision
The European Central Bank published the European System of Central Banks’ proposals to strengthen MiCAR, particularly for stablecoins and crypto-asset service providers. The response favors maturity-based liquidity requirements, tighter safeguards for third-country stablecoin schemes, EU level supervision by the European Securities and Markets Authority and risk-sensitive capital rules. It also calls for EU regulation of crypto lending and staking and harmonised legal treatment of tokenised assets.
European Central Bank prepares own funds investments in tokenised securities settled via Pontes
The European Central Bank is preparing to invest a small portion of its own funds in tokenised securities, with settlement in central bank money through Pontes. Initial purchases will target euro-denominated public sector and European supranational securities. The Executive Board will determine operational details and timing after the preparatory work.
Guernsey Financial Services Commission removes retail access, duplicate licensing and reporting barriers for virtual asset firms
The Guernsey Financial Services Commission has eased virtual asset rules by removing the blanket retail customer restriction and the need for existing licensees to obtain a separate virtual asset service provider licence in every case. From Oct. 1, 2026, it will also remove the sector-specific environmental reporting requirement for virtual asset providers.
U.S. Securities and Exchange Commission approves temporary exemption for limited onchain trading of tokenized NMS stocks
The U.S. Securities and Exchange Commission approved a temporary, conditional exemption for limited onchain trading of tokenized NMS stocks on qualifying venues. The framework imposes symbol and volume limits, transparency and technology safeguards, and disclosure and recordkeeping conditions while generating data for future policymaking.
Brazil Securities Commission working group submits draft resolution for tokenized securities DLT pilot
The Brazil Securities Commission’s Tokenization Working Group submitted a draft resolution proposing a DLT pilot covering the securities lifecycle from issuance through settlement. The tests would assess the technology’s viability, interoperability and risks under direct CVM monitoring. They would run for 60 days, extendable by up to 30 days, and inform possible regulatory or legislative changes.
Brazil Securities Commission updates market on tokenization work and emerging regulatory agenda
The Brazil Securities Commission updated market participants on its Tokenization Working Group and the emerging regulatory agenda for tokenized securities. Discussions covered tokenized shares and real assets, distributed ledger technology across post-trade activities, market infrastructure and exchange competition.
Guernsey Financial Services Commission reviews first year of Digital Finance Initiative and advances stablecoin framework
The Guernsey Financial Services Commission has reviewed the first year of its Digital Finance Initiative, highlighting targeted changes on tokenisation, virtual asset services, financial crime technology and early regulatory engagement. It is now progressing a stablecoin framework, with feedback and rules expected by the end of 2026.
Securities and Exchange Board of India launches Demat 2.0 tokenised corporate bond pilot with INR 10.25 billion issued
The Securities and Exchange Board of India has launched Demat 2.0, a tokenised corporate bond pilot that uses a depository owned distributed ledger and the Reserve Bank of India’s wholesale digital rupee for simultaneous securities and funds settlement. Three issuers have raised INR 10.25 billion, while later phases will add secondary trading and retail investor access. Existing investor rights and regulatory requirements remain unchanged.
HM Treasury outlines autumn delivery priorities for tokenised wholesale markets and legal changes beyond the sandbox
HM Treasury outlined an autumn delivery phase for tokenised wholesale markets, including work to identify legal changes needed beyond the Digital Securities Sandbox. The sandbox has 16 participants and its first approval for live activity, while the Digital Gilt Instrument is scheduled for issuance in the first quarter of 2027.
Argentina Securities Commission chair reviews expanded tokenization regime and virtual asset provider rules
Argentina Securities Commission Chair Roberto E. Silva reviewed the country’s evolving rules for virtual asset service providers and tokenization at an international law and technology conference. He highlighted the expansion of the negotiable securities tokenization regime to new instruments and the extension of its regulatory sandbox.
South Korea Financial Services Commission sets phased tokenized securities rollout starting in February 2027
The South Korea Financial Services Commission set a phased tokenized securities roadmap beginning in February 2027 with institution-only private funds and bonds, trust-based unlisted shares and public fractional-investment securities. Existing intermediaries may operate within their current licenses, while retail OTC purchases will be capped at KRW 100 million annually per venue and issuer account managers must hold KRW 4 billion in capital. The plan advances the legal framework toward implementation and introduces immediate investor-protection guidelines for noncash trust beneficiary securities.
Argentina Securities Commission chair reviews Big Bang reforms and expanded tokenization regime
Argentina Securities Commission Chair Roberto E. Silva reviewed the regulator’s Big Bang overhaul, focused on simpler rules, broader financing access and investor protection. He highlighted the expansion of tokenization to securities under the automatic public offering framework and the regulation of virtual asset service providers.
Reserve Bank of Australia consults on RITS support for tokenised settlement, finds no clear case for retail CBDC
The Reserve Bank of Australia is consulting on how RITS could support tokenised asset markets and private money, advancing wholesale settlement work identified through Project Acacia. A separate RBA-Treasury update reaffirmed that Australia’s retail payments system is working well and found no clear public interest case for a retail CBDC.