In a speech, Central Bank of Ireland Deputy Governor Vasileios Madouros set out the bank's approach to tokenised finance, taking a broadly positive view of the technology's potential while stressing that its benefits will depend on system-wide coordination, interoperable infrastructure and the continued role of central bank money as the anchor of the financial system. He also flagged macrofinancial issues that tokenisation could reshape, including the growth of stablecoins, the role of established capital markets intermediaries and the risk of fragmentation across distributed ledger technology networks. The response described in the speech centres on three areas. First, as part of the Eurosystem, the bank is supporting work to keep central bank money usable in both wholesale and retail markets, including an initial launch later this year to enable settlement of distributed ledger technology based transactions in central bank money and continued work on the Digital Euro. Second, the Eurosystem has begun accepting marketable assets issued in central securities depositories using distributed ledger technology as eligible collateral and is examining whether other distributed ledger technology issued assets could become eligible in future. Third, the Central Bank is authorising and supervising Markets in Crypto-Assets Regulation entities in Ireland, using its innovation sandbox to assess DLT use cases and seeking feedback through its March discussion paper on whether Irish or European Union legal and regulatory frameworks need to adapt as tokenisation scales. The speech also pointed to further public-private work on a longer-term European tokenised financial ecosystem and said the Central Bank will support Ireland's Department of Finance in negotiations on Digital Euro legislation during Ireland's presidency of the Council of the European Union in the second half of this year.
Central Bank of Ireland2026-05-26
Central Bank of Ireland outlines tokenised finance approach as Eurosystem prepares wholesale settlement of tokenised transactions in central bank money later this year
The Central Bank of Ireland Deputy Governor outlined a positive stance on tokenised finance, stressing system-wide coordination, interoperable infrastructure and central bank money as the anchor, while noting macrofinancial issues such as stablecoin growth, capital markets intermediaries and potential DLT fragmentation. He set out a three-part response: enabling DLT-based settlement in central bank money and advancing the Digital Euro; expanding eligibility of DLT-issued assets as Eurosystem collateral; and authorising and supervising MiCA entities while using the innovation sandbox and consultation to assess regulatory changes. The Bank will also support work on a longer-term European tokenised financial ecosystem.