Europe's Tokenization Push: France FinTech Demands Bigger DLT Ambitions

Alejandro Martínez · 2026-09-11

### Europe's Tokenization Ambitions Hit a Ceiling France FinTech just teamed up with a coalition of traditional finance players and tokenized asset firms. Their message to EU lawmakers? The current DLT Pilot Regime revision doesn't go far enough. And honestly, they might have a point. The European Commission wants to raise the ceiling for financial instruments traded on DLT infrastructure from €6 billion to €100 billion. That's about $6.5 billion to $108 billion. Sounds impressive, right? But here's the thing: it's still a drop in the bucket compared to the size of global capital markets. > "We need a framework that doesn't just keep pace with tokenization—it needs to lead it." — A sentiment echoed across the European fintech ecosystem. ### Why the Proposed Cap Falls Short Tokenization is moving fast. Real-world assets, securities, funds—they're all migrating to blockchain rails. The US, Singapore, and Switzerland are already making bold moves. If Europe caps its DLT market at $108 billion, it risks becoming a bystander in its own financial revolution. The coalition's argument is simple: you can't build a world-class tokenized market with training wheels on. The current limit, even at $108 billion, is like putting a governor on a race car. It might feel safe, but it won't win races. ### Three Key Demands from the Coalition France FinTech and its partners aren't just complaining. They've laid out specific recommendations for EU co-legislators: - **Remove the global cap entirely** – or at least set it high enough to let European DLT infrastructures actually scale. No arbitrary ceilings that stunt growth. - **Build in flexibility** – give the European Commission a mechanism to adjust thresholds as the market evolves. Because let's face it, nobody knows exactly how big this will get. - **Keep the playing field level** – no differentiated thresholds that favor one type of infrastructure over another. Fair rules for all models. These aren't radical ideas. They're practical steps to make Europe competitive. ### What's at Stake for the US Audience You might be thinking, "This is Europe's problem, right?" Not quite. Global capital flows don't respect borders. If Europe builds a robust tokenization framework, it creates new opportunities for US investors and fintechs. If it doesn't, the innovation shifts elsewhere—likely to jurisdictions with clearer, more ambitious rules. US firms watching the European payments and tokenization space should pay attention. The DLT Pilot Regime revision is part of the broader Market Integration and Supervision Package (MISP). It's a signal of how serious Europe is about digital assets. ### The Bottom Line France FinTech and its allies want a DLT regime that matches Europe's stated ambitions. The current proposal—raising the cap to $108 billion—is a step, but a small one. They're pushing for no cap, flexible adjustments, and equal treatment across infrastructures. The goal? A European framework that can sustainably support tokenized financial markets and keep them globally competitive. That's not just good for Europe. It's good for anyone who believes in open, innovative capital markets. So far, the Commission hasn't responded to these demands. But with the MISP still in play, there's time to get it right. The question is whether lawmakers will listen—or whether Europe will watch the tokenization train leave the station without it.