The European Union’s markets regulator is seeking feedback on whether regulations need to be amended to accommodate tokenized securities.
- The European Securities and Markets Authority (ESMA) is seeking submissions from stakeholders on the use of blockchain technology in the settlement and trading of tokenized securities.
- Specifically, ESMA is exploring whether existing rules need to be amended to be effective for securities traded using distributed ledger technology (DLT).
- The agency’s “DLT Pilot” will explore how data stored on a blockchain could enable more efficient, secure and cost-effective trading and settlement of securities. It is expected to commence in early 2023.
- Stakeholders have until March 4 to submit their comments.