ESMA Proposes Permanent DLT Pilot Regime Amid Growing Market Interest

The European Securities and Markets Authority (ESMA) has recommended transforming the Distributed Ledger Technology (DLT) Pilot Regime into a permanent framework. The MOVE follows a surge in applications after initial slow adoption, signaling institutional confidence in blockchain-based market infrastructures.

ESMA's report analyzes operational models, regulatory hurdles, and exemption patterns across EU jurisdictions. It proposes adjustments to eligibility thresholds and regulatory flexibility to attract broader participation. The recommendations were developed in collaboration with national regulators and the European Central Bank.

This regulatory evolution comes as traditional finance increasingly explores DLT solutions for securities settlement and asset tokenization. The proposed permanence of the regime could accelerate institutional adoption of blockchain infrastructure across European capital markets.