Tokenization Showdown: Why France FinTech Wants to Blow the Lid Off Europe's DLT Limits

Alejandro Martínez · 2026-09-11

France FinTech just joined forces with a coalition of traditional finance heavyweights and tokenization advocates. Their target? The European Union's DLT Pilot Regime (DLTPR). Their message? It's time to think bigger. Much bigger. ### The Current Cap: A Speed Bump on a Superhighway Right now, the EU's DLT Pilot Regime caps trading of tokenized financial instruments at €6 billion (about $6.5 billion). That might sound like a lot, but in the grand scheme of global capital markets, it's pocket change. The European Commission has proposed raising that cap to €100 billion (around $108 billion). Sounds generous, right? Not according to France FinTech and its allies. They argue that even $108 billion is a drop in the bucket compared to the size of European capital markets and the breakneck pace of tokenization worldwide. In other words, Europe risks showing up to a Formula 1 race with a go-kart. ### Three Big Asks from the Coalition The coalition isn't just complaining. They've laid out three concrete recommendations for EU co-legislators as part of the Market Integration and Supervision Package (MISP). Here's the gist: - **Abolish the cap entirely** – or at least set it high enough to let European DLT infrastructures actually compete. A global cap, they say, is like putting a governor on a race car. - **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 fast tokenization will grow. - **Keep the playing field level** – no differentiated thresholds that favor one business model over another. Fair rules for all infrastructures. ### Why This Matters for the U.S. and Beyond If you're reading this from the United States, you might wonder why you should care about a European regulatory squabble. Here's why: tokenization is a global game. If Europe lags behind, it creates inefficiencies in cross-border capital flows. U.S. firms with European operations could face a fragmented landscape. And if Europe gets it right, it could set a benchmark for other regions. > "The goal is a European framework that can sustainably support the growth of tokenized financial markets and their global competitiveness," the coalition wrote in a joint letter. That's not just bureaucratic speak. It's a warning. Tokenized assets – from bonds to real estate to private equity – are moving fast. The U.S. is watching, Asia is moving, and Europe doesn't want to be left holding a rulebook that's too small for the game. ### The Bottom Line France FinTech and its partners aren't asking for the moon. They're asking for a regulatory framework that matches the ambition of the EU's own stated goals. The Commission's proposal to raise the cap to €100 billion ($108 billion) is a step in the right direction. But if Europe wants to be a leader in tokenized finance, it may need to take a leap instead. As the MISP negotiations unfold, keep an eye on this. Because what happens in Brussels won't stay in Brussels – it'll ripple through global markets.