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

Alejandro Martínez · 2026-09-11

France FinTech just joined forces with a coalition of traditional finance players and tokenized asset firms to push European lawmakers for a more ambitious DLT Pilot Regime (DLTPR). The ask? A regulatory sandbox that can actually compete on a global scale. ### Why the Current Proposal Falls Short The European Commission wants to raise the ceiling for financial instruments traded on DLT infrastructure from roughly $6.5 billion to $108 billion. Sounds huge, right? But here's the catch: that's still a drop in the bucket compared to the size of global capital markets. Tokenization is moving fast worldwide, and Europe risks falling behind if its sandbox is too small. ### What the Coalition Wants The group has three key recommendations: - **Remove the cap entirely** – or at least set it high enough to let European DLT infrastructures reach real market scale. - **Add a flexible adjustment mechanism** – so the Commission can update thresholds as the market evolves, not wait years for new legislation. - **Ensure fair rules** – no tiered thresholds that favor one type of infrastructure over another. As one coalition member put it: "We need a framework that doesn't just test tokenization but actually lets it grow." ### The Bigger Picture Europe's goal is to build a lasting framework for tokenized financial markets and stay competitive globally. If the DLT Pilot Regime remains too restrictive, innovation could migrate to more welcoming jurisdictions. That's a risk France FinTech and its partners aren't willing to take. So what happens next? The ball is in the co-legislators' court. Will they listen to the industry's call for bigger ambitions? Only time will tell.