EU Shifts Focus from MiCA 2.0 to Tokenization of Traditional Financial Assets

The European Commission is pivoting toward tokenizing traditional financial instruments, sidelining the anticipated MiCA 2.0 framework. Proposals expected in December will target equities, bonds, and derivatives, aiming to modernize Europe's capital markets through blockchain technology.

Peter Kerstens, an adviser to the European Commission, underscored the strategic shift. "Tokenization is not just innovation—it's a necessity for market integration," he said. The initiative will leverage the upgraded DLT Pilot Regime to bridge fragmented financial systems across the EU.

The Savings and Investment Union (SIU) will serve as the vehicle for this transformation. By digitizing legacy assets, the bloc seeks to enhance liquidity and reduce settlement inefficiencies. This move aligns with global institutional trends favoring real-world asset (RWA) tokenization over standalone crypto regulation.