At a glance
- The European Central Bank (ECB), the European Commission and the European Securities and Markets Authority (ESMA) have called for nominations to the European Tokenisation Standards Group (ETSG), an industry-led body. Applications close on 27 Nov 2026.
- The group is due to start work in January 2027 and aims to deliver initial standards by early 2028, according to its mandate.
The group is meant to cover the point where tokenisation tends to break down: moving a tokenised instrument between one distributed ledger technology (DLT) platform and another, or between a platform and today’s settlement systems.
What the mandate says
The institutions describe the ETSG as “market-driven”. Its members will choose a chair and a co-chair from among themselves. The ECB, the Commission and ESMA will sit as permanent observers, and observers’ views do not count towards the group’s consensus unless they come from those three bodies.
Its stated objective is end-to-end interoperability, reached through agreement on common market standards. The group is also to build a framework for monitoring whether members actually use the standards, and it may recommend that EU authorities create incentives for compliance. A recommendation is not a rule.
Consensus is defined by reference to the International Organization for Standardization, as general agreement without “sustained opposition” from an important part of the interests concerned. The mandate says that does not require unanimity.
Why now
The background paper ties the group to two pieces of unfinished work. In December 2025 the Commission proposed amendments to the DLT Pilot Regime, the EU’s sandbox for DLT market infrastructure, that would require firms in the post-trading chain to work towards interoperability and set technical standards. Those amendments have not been adopted by the co-legislators, the Parliament and the Council.
The Eurosystem’s Appia initiative, a plan for a European tokenised financial ecosystem, also names standards as a building block. The institutions say the ETSG can begin before the legal change, “without prejudice” to what the legislators finally decide. The mandate quotes a July 2026 Eurogroup statement that without shared standards, “the multiplication of DLT networks risks recreating and compounding the fragmentation” the EU has tried to overcome.
Products are arriving before the standards. In the past fortnight Amundi put a share class of an equity index fund on Ethereum, the Bank of England consulted on tokenised collateral at clearing houses, and on Monday an NYSE-affiliated platform picked Avalanche as its settlement ledger. Each of those uses its own plumbing.
Who can apply
The call is aimed at wholesale market participants: EU associations, private firms, global institutions, fintechs and technical providers working on tokenisation or DLT-based services. Nominees must have standards expertise, represent an entity with a European presence, have time to take part and be able to commit their organisation to the group’s findings.
The authorities say they will weigh geography and type of stakeholder to keep the membership balanced, and that no single business model or technology should dominate. Candidates, selected or not, will get feedback. Questions go to [email protected].
What happens next
Applications are due by Friday 27 Nov, after which the three institutions will choose members. The group is due to start in January 2027. Unless the institutions agree otherwise, progress reports will be public, and the ECB will by default publish the group’s documents.
We found no member count in the documents. This is not legal advice.
Related: An NYSE-affiliated tokenized stock platform picked Avalanche as its settlement ledger
This article is for information only and is not investment advice.