European tokenization companies urge EU to revisit DLT pilot

A group of European tokenization companies has reportedly sent a joint letter to European Union policymakers, urging them to remove constraints built into the EU’s blockchain pilot regime, arguing that current timelines risk leaving the EU behind in digital assets.

Reported by The Block, the letter is signed by companies including 21X, Central Securities Depository, Boerse Stuttgart Group, Lise, and Axiology. Its focus is the EU’s Distributed Ledger Technology Pilot Regime, which is the EU’s regulatory sandbox for tokenization.

According to the signatories, the regime includes tight restrictions on asset eligibility, volume caps, and licensing limits that are disincentivizing firms that are already providing services in the U.S. from participating. The signatories urge EU policymakers to act quickly to reduce and, in some cases, remove the restrictions entirely.

Though the letter is not yet publicly available in full, Securitize published an ‘adaptation’ of the letter on LinkedIn on February 5.

“While Europe deliberates, the U.S. has already acted and is on track to own the digital rails of the future global economy.”

Proposed changes to the regime include removing all limits on the assets permitted to be tokenized, currently set out in Article 3 of the Pilot framework. It limits the Pilot to shares whose issuer has a market cap of under €500 million ($589 million) and bonds with an issue size of under €1 billion ($1 billion).

The letter also asks for the removal of market cap limits, which prevent the aggregate market value of DLT market infrastructure from exceeding €9 billion ($10 billion). It advocates for a replacement limit of up to €150 billion ($176 billion).

It also asks that a six-year limit on granted licenses be removed.

“Without timely action on the DLT Pilot Regime, the EU risks losing market relevance. The structural inertia of this package delays effective application until at least 2030 – creating not a temporary setback, but a critical strategic vulnerability; undermining the prompt changes needed to keep EU capital markets competitive globally and prevent liquidity from migrating to more efficient jurisdictions.”

The letter calls the changes ‘quick-fixes,’ which would be ‘minimally invasive’ and must be implemented in the short term.

The full list of signatories is below:

• Marius Jurgilas, CEO of Axiology DLT UAB
• Max J. Heinzle, CEO of 21X AG
• Ondřej Dusílek, CEO of Central Securities Depository Prague
• Mark Kepeneghian, CEO of Lise SA
• Amparo Garcia Flores, CEO of Securitize Europe Brokerage and Markets SV SA
• Dr. Lidia Kurt, CEO of Seturion by Boerse Stuttgart Group
• Javier Tordable, CEO of Bit2Me STX
• David Martín, CEO of OpenBrick

Read the letter here.

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