The European Union markets regulator wants to know if regulations need to be changed to support tokenized securities.
- The European Securities and Markets Authority (ESMA) solicits submissions from stakeholders on the use of blockchain technology in the settlement and trading of tokenized securities.
- Specifically, ESMA is investigating whether existing rules need to be changed to be effective for securities traded using distributed ledger (DLT) technology.
- The agency’s DLT Pilot will explore how data stored on a blockchain could enable more efficient, secure and profitable securities trading and settlement. It should start in early 2023.
- Stakeholders have until March 4 to submit their comments.