European markets face a turning point: either harness the power of tokenisation or risk losing ground to global competitors. That was the message from Natasha Cazenave, Executive Director of the European Securities and Markets Authority (ESMA), in her keynote speech at the Capital Markets in the Digital Age conference.
Cazenave described tokenisation—the digitisation of financial instruments using distributed ledger technology—as a structural shift rather than a passing trend. Properly implemented, it could cut compliance costs, boost transparency, and allow regulators to trace transactions in real time. She argued that such innovations are critical for the EU’s ambition to build a deeper, more integrated Savings and Investment Union.
For ESMA, the challenge is to align oversight with innovation. Cazenave stressed the need for cooperation between regulators, established financial institutions, and technology providers, noting that the authority is already investing in supervisory tools to adapt to digital markets. Tokenisation, she added, offers Europe the chance to strengthen its competitiveness at a moment when the U.S. and U.K. are pushing ahead with similar initiatives.
Her warning underscored a larger point: tokenisation is no longer an experiment on the fringes of finance. It is a strategic priority, and Europe must decide whether to lead or follow in reshaping the future of its capital markets.
Source: Natasha Cazenave, Keynote Speech, Capital Markets in the Digital Age, Dubrovnik, 1 September 2025 (ESMA).
