Europe's Tokenization Push: Why France FinTech Says the Current Plan Falls Short

Alejandro Martínez · 2026-09-11

France FinTech just teamed up with a broad coalition of traditional finance players and tokenized asset firms to send a clear message to European lawmakers: the current plan for the DLT Pilot Regime (DLTPR) doesn't go far enough. This isn't just a technical debate. It's about whether Europe can build tokenized capital markets that actually compete on a global scale. ### The Proposal on the Table The European Commission wants to raise the cap on financial instruments that can trade on DLT infrastructure from roughly $6.5 billion to $108 billion (€6 billion to €100 billion). That sounds like a big jump, right? And it is. But here's the thing—it's still tiny compared to the size of global capital markets. Tokenization is moving fast worldwide, and Europe risks falling behind if it doesn't think bigger. ### What the Coalition Is Asking For France FinTech and its partners aren't just complaining. They've laid out three concrete recommendations for co-legislators working on the Market Integration and Supervision Package (MISP): - **Remove the global cap entirely**, or at least set it high enough to let European DLT infrastructures reach real market scale. - **Create a flexible adjustment mechanism** so the European Commission can raise those thresholds as the market evolves—no need for new legislation every time. - **Ensure fair rules across all infrastructures**, without different thresholds that could favor one business model over another. "The goal is simple," the coalition argues. "We need a European framework that can sustainably support tokenized financial markets and keep them competitive globally." ### Why This Matters for the U.S. Audience If you're in the U.S. watching European payments and fintech news, this is worth your attention. Europe's approach to tokenization could set a precedent for how digital assets are regulated and traded worldwide. A restrictive cap might push innovation to other jurisdictions—including the U.S.—but it could also fragment global markets. On the flip side, a more ambitious framework could create new opportunities for cross-border collaboration and investment. ### The Bigger Picture Tokenization isn't a niche experiment anymore. Major financial institutions are exploring how to put bonds, equities, and even real estate on distributed ledgers. The potential benefits are huge: faster settlement, lower costs, and 24/7 markets. But without the right regulatory environment, those benefits stay theoretical. France FinTech's push is a wake-up call. The European Commission's proposal is a step forward, but the coalition argues it's not enough to make Europe a leader. The real question is whether lawmakers will listen and raise the ambition before it's too late. For now, the ball is in the co-legislators' court. They'll decide whether to stick with the current plan or go bigger. Either way, the outcome will shape the future of tokenized finance in Europe—and beyond.