dlt

According to official news, the UK's Financial Conduct Authority (FCA) has officially released new industry guidelines, clarifying the standards and requirements for companies to comply with the current regulatory framework when using Distributed Ledger Technology (DLT).The new regulations also optimize the fund trading mechanism, introducing an optional direct-to-fund (D2F) model that allows investors to directly connect traditional funds with tokenized funds for transactions, significantly improving circulation efficiency. These rules were jointly formulated by the FCA and the industry, maintaining strict regulatory standards while accommodating financial innovation, helping the asset management industry reduce costs and increase efficiency, and accelerating the implementation of traditional asset tokenization.

According to Bloomberg, 39 signatories, including Nasdaq, Stuttgart Stock Exchange Group, and various financial technology associations, are calling on the European Commission and the European Parliament to treat the distributed ledger technology pilot system as an independent legislative fast track and to separate it from the EU market integration and supervision scheme.The signatories stated that if the overall negotiation process takes too long, Europe may fall behind the United States in DLT applications, and they demand the removal of asset class restrictions, an increase in the total trading volume cap to €150 billion, and the elimination of license time limits. The letter also mentioned that the United States has established a stablecoin regulatory framework through the Genius Act and is rapidly establishing a leading position in the tokenized asset field.The European Commission is currently promoting a rapid resolution of the entire regulatory scheme and views it as a key part of the Capital Markets Union plan. Financial Services Commissioner Maria Luis Albuquerque has previously called for all legislative proposals to be passed in sync.

Stablecoin issuer Circle calls on the EU to accelerate the reform of the digital asset regulatory framework, believing that the current pace may slow down institutional adoption of the tokenized market.In feedback regarding the EU's "Market Integration Proposal," Circle stated that the proposal is an important step towards modernizing capital markets, but there are still shortcomings in scalability, regulatory mechanisms, and settlement rules. Circle supports the optimization of the distributed ledger technology (DLT) pilot framework, including expanding the range of assets that can be included and increasing the transaction size limit, but points out that existing restrictions still suppress liquidity and institutional participation. The company suggests introducing a "dynamic threshold" mechanism that allows regulatory parameters to automatically adjust according to market developments, rather than relying on periodic legislative updates. At the same time, Circle calls for a clear path for transitioning from the pilot phase to a formal regulatory system. Furthermore, Circle emphasizes the need to accelerate the pace of relevant reforms, warning that if regulatory progress is slow, it may lead to the migration of tokenized financial activities to faster-developing markets like the United States.

Several European tokenization and market infrastructure companies have jointly written to EU lawmakers, urging for a prompt revision of the EU's DLT Pilot Regime. Securitize, 21X, Boerse Stuttgart Group, and others pointed out that the current asset scope, issuance size limits, and six-year license restrictions have hindered the expansion of regulated on-chain markets.Relevant institutions believe that if adjustments are delayed, global liquidity may permanently shift in favor of the U.S. due to advancements in tokenized securities and near-real-time settlement. The proposal is not about relaxing regulations, but rather about technically "quickly revising" to expand the scope of eligible assets, raise limits, and remove time restrictions to maintain the competitiveness of European capital markets.

According to market news, licensed company Axiology under the European DLT pilot regulatory framework announced the completion of a €5 million (approximately $6 million) seed round financing.This round of financing was led by Exponential Science, e2vc, and Coinvest Capital, with new investors TIBAS Ventures and Plug and Play participating. The company's total financing amount has reached €7 million. Axiology holds one of only four comprehensive "DLT trading and settlement system" licenses under the EU DLT pilot scheme. The company operates on a permissioned XRP Ledger, focusing on fixed income securities and the institutional market. Since the platform's launch in September last year, it has introduced services such as securities custody, shareholder registration management, and multilateral trading facilities. The platform currently supports settlement with regulated stablecoins and plans to participate in the European wholesale central bank digital currency initiative, while achieving settlement on the TARGET2 system through the European Central Bank's Project Pontes and Project Appia.

According to market news, Qatar's Doha Bank successfully issued $150 million in digital bonds, achieving instant settlement (T+0) through Euroclear's distributed ledger infrastructure. The bonds have been listed on the London Stock Exchange's International Securities Market.Standard Chartered Bank acted as the sole global coordinator and arranger for this transaction. This issuance marks a shift towards regulated DLT systems, rather than public blockchains, becoming the preferred infrastructure for institutional tokenized debt. Euroclear's DLT platform is specifically designed for regulated capital markets, providing controlled access, legal finality, and integration with existing custody and settlement systems.

Swiss crypto bank Amina Bank, along with Crypto Finance Group and its partner banks, recently completed a pilot project using Google Cloud Universal Ledger for distributed ledger technology (DLT): achieving fiat settlements between regulated banks in Switzerland, reaching near real-time, 24/7 availability.The pilot did not introduce a new digital currency but continued to use traditional commercial bank funds, demonstrating that DLT technology can seamlessly integrate with traditional banking systems within the existing regulatory and compliance framework. Officials stated that this achievement lays the groundwork for future promotion of "cross-border payments," "multi-currency settlements," and "point of sale (POS) integrated payments," indicating that the traditional financial system may be on the verge of a Web3/blockchain infrastructure transformation.

Securitize has obtained authorization from the EU DLT Pilot Regime, allowing it to operate a regulated tokenized trading and settlement system in the EU, becoming an institution with compliant tokenization infrastructure in both the US and the EU.The license was issued by the Spanish CNMV, enabling it to issue, trade, and settle tokenized securities at the market infrastructure level, and to connect with its broker-dealer, digital transfer agent, and alternative trading system operations in the US. Securitize will deploy the European system on Avalanche, with the first issuance expected to take place in early 2026.

ChainCatcher news, according to the UK government's official website, the UK government has announced a digital strategy for the wholesale financial market, clearly supporting the application of distributed ledger technology (DLT) and asset tokenization in the wholesale financial sector. The strategy states that the government will promote the industry to identify the best application scenarios for DLT, support the tokenization of financial assets and the digitization of post-trade processes, and test various digital payment solutions, including stablecoins, through a "digital securities sandbox." In addition, the UK will improve the relevant legislative and regulatory framework, encourage the industry to form cross-market alliances, drive digital innovation, and consolidate its leading position in global fintech.

ChainCatcher news, according to CoinDesk, the European Central Bank's Governing Council has approved two research projects using central bank funds to settle transactions with distributed ledger technology (DLT), aimed at enhancing the efficiency of payment systems. The short-term solution "Pontes" will connect the DLT platform to TARGET services, with a pilot expected to launch in Q3 2026; the long-term solution "Appia" focuses on global operations and DLT solution analysis. The central bank stated that this move reflects its commitment to supporting innovation while ensuring the safety and efficiency of financial infrastructure.

ChainCatcher news, the Securities Commission of Malaysia (SC) today released a consultation paper aimed at gathering public opinions on the draft regulatory framework for tokenized capital market products. The public consultation period will last from May 6, 2025, to June 16, 2025.The SC pointed out that tokenized capital market products digitize traditional financial products such as stocks, bonds, and funds through distributed ledger technology (DLT) and should be distinguished from digital tokens and digital currencies, as the latter are regulated under different frameworks.The SC stated that the establishment of the regulatory framework is in response to the growing market interest in tokenized products. The framework will focus on exploring the application of DLT in the capital market, including programmable assets, fractional ownership, and enhanced transparency, while ensuring investor protection. The draft also addresses key areas such as public disclosure requirements, governance controls, and technology risk management, and proposes additional requirements for relevant licensees.

ChainCatcher news, according to Bloomberg, global asset management giant BlackRock has submitted an application to the U.S. Securities and Exchange Commission (SEC) to create a blockchain-based share class for the BlackRock BLF Treasury Trust Fund, labeled as DLT, which stands for Distributed Ledger Technology. DLT aims to leverage blockchain technology to record stock ownership or streamline certain fund operations of money market funds that invest in high-quality short-term U.S. Treasury securities. DLT shares will only be available for purchase through Bank of New York Mellon (BNY), which plans to use blockchain technology to maintain a mirror record of stock ownership for its clients.

ChainCatcher news, according to Bloomberg ETF analyst Henry Jim, BlackRock has applied to add a digital share class (DLT) to its $150 billion money market fund.The DLT shares will only be sold through BNY Mellon, with plans to use blockchain technology to map ownership. Henry Jim believes this move may be preparing for the future use of digital currencies/cash.

ChainCatcher news, according to ledgerinsights, the Swiss National Bank (SNB) has taken the lead in launching its pilot wholesale central bank digital currency (wCBDC) for settling tokenized securities transactions on the SIX Digital Exchange (SDX). The Swiss National Bank recently published its annual report, which outlines other related activities, including the exploration of synthetic CBDC, a privately tokenized currency backed by central bank funds.The Swiss central bank describes this tokenized private currency as one of three options for DLT settlement it is considering. The other option is wCBDC. The third is a connection between the SIC payment system and the DLT system, which has previously been tested in its Project Helvetia CBDC exploration.The Swiss central bank reiterated that it has not committed to issuing a permanent wCBDC and is not inclined towards adopting any particular solution, but is simply evaluating various options at this stage.

ChainCatcher news, according to CoinDesk, BX Digital, a subsidiary of the Stuttgart Stock Exchange in Germany, has received approval from the Swiss Financial Market Supervisory Authority (FINMA) to operate a digital asset trading and settlement platform, becoming the first institution in Switzerland to obtain such a license.The Zurich-based company will operate trading facilities using distributed ledger technology (DLT) to streamline the trading process of tokenized financial instruments. BX Digital will leverage the Ethereum blockchain to facilitate direct asset transfers without the involvement of intermediaries such as central securities depositories.

ChainCatcher news, according to CoinDesk, Caroline Pham, the acting head of the U.S. Commodity Futures Trading Commission (CFTC), is pushing for a tokenization pilot program backed by stablecoins. The program will invite executives from digital asset companies such as Coinbase, Ripple, and Circle to participate, but specific dates and details have yet to be determined. Last November, Pham proposed the idea of a tokenization regulatory sandbox through the Global Markets Advisory Committee, but it was not adopted by the previous leadership.Pham stated that this move will promote "responsible innovation," utilizing distributed ledger technology (DLT) to use non-cash collateral, enhancing the U.S.'s global leadership in the digital asset space. Her proposal also mentioned that by improving the infrastructure for regulatory margin-eligible assets, DLT helps address challenges without changing collateral eligibility rules, allowing market participants to identify and manage risks associated with the use of DLT under existing policies.

ChainCatcher news, according to Ledger Insights, the UK's Financial Conduct Authority (FCA) opened the Digital Securities Sandbox (DSS) for applications at the end of September, relaxing certain rules for DLT market infrastructure. The two entities that have been announced to receive preliminary approval are (expected) Central Securities Depository (CSD) Montis (owned by Archax) and ClearToken, which plans to operate as a central clearinghouse for crypto and tokenized assets. ClearToken has received support from companies such as Nomura Securities' Laser Digital and Standard Chartered's Zodia Custody.Similar to the EU's DLT pilot regime, the DSS program aims to relax the requirement that exchanges and central securities depositories must always be separate (which can sometimes be impractical for DLT).

ChainCatcher news, Luxembourg has passed the "Blockchain Law 4," aimed at making the adoption of DLT for securities easier. This is the country's fourth blockchain law.According to the current DLT securities law, Luxembourg adopts a two-tier concept, including a central account manager, similar to a Central Securities Depository (CSD), but less cumbersome. The second tier involves account managers, i.e., custodians.EU credit institutions or investment firms or Central Securities Depositories (CSD) can act as control agents. There is no need to obtain a license in Luxembourg, but the regulatory authority (CSSF) must be notified several months in advance.

ChainCatcher news, the International Capital Market Association (ICMA) has released a digital debt reference guide based on DLT. This document is the result of ICMA's DLT Bond Working Group, chaired by Christoph Hock of Union Investment."Token economics, especially DLT-based bonds, have become increasingly important in recent months," Hock mentioned, alluding to the recent wholesale DLT settlement trials conducted by the European Central Bank in central bank money, which have helped to increase activity. He continued, "Currently, we see the entire value chain being highly fragmented, and we look forward to strengthening collaboration and standardization, which will play a key role in further building the tokenized world. With its DLT Bond Reference Guide, ICMA and all stakeholders have taken a significant step in this direction."As an asset management company, Union Investment has been one of the most active investors in the digital bond space, starting with the issuance of the first bond by the European Investment Bank (EIB) in April 2021. The EIB has now issued six digital bonds, including two issued in November as part of the ECB DLT settlement trial.