In brief
- The tokenized assets market is now worth about $600 billion globally.
- Europe leads in fixed-income issuance, accounting for more than half of 2024’s total.
- But regulators are trying to strike a balance between innovation and investor protection.
The European Union’s top markets regulator is calling for a balance between financial innovation and investor protection, as tokenization—the digital representation of financial instruments on distributed ledgers—continues to garner interest across global markets.
Natasha Cazenave, executive director of the European Securities and Markets Authority, said Monday the shift in financial markets, driven by distributed ledger technology, holds promise but demands safeguards.
“Tokenization … could lead to a transformational change of our markets,” she said. “For regulators and policymakers, the priority must be to ensure that such innovation develops within a framework that safeguards investors’ interests and preserves financial stability.”
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Author: Callan Quinn
