ESMA-DLT-PILOT

ESMA DLT Pilot Regime EU 2023-2026 experimental.

Definition

DLT Pilot Regime 3 authorised operators: (1) DLT MTF (Multilateral Trading Facility): tokenized securities trading platform, similar to MiFID II MTF but DLT-based ; (2) DLT SS (Settlement System): DLT replacing CSDs Central Securities Depositories for tokenized securities settlement ; (3) DLT TSS (Trading and Settlement System): combines MTF + SS in single DLT platform (hybrid). Thresholds: tokenized equity max EUR 500K market cap (issuance), tokenized bonds max EUR 1B, tokenized UCITS max EUR 500M ; DLT operator portfolio max EUR 6B (~$6.5B). Regulatory exemptions: CSDR + MiFID II + SFD specific exemptions granted by NCA + ESMA if conformity guaranteed. NCAs supervision: BaFin (Germany), AMF (France), CONSOB (Italy), CySEC (Cyprus), etc. + ESMA coordination role. ~5-10 DLT pilot operators authorised 2024 (few effective applications, project considered underused but extending review possible).

Origin

EU Regulation 2022/858 DLT Pilot Regime published 30 May 2022 ; effective 23 March 2023 ; 3-year duration until 23 March 2026 ; ESMA supervision + national NCAs.

Example in context

21X (Mountain Group subsidiary) applies for ESMA DLT Pilot Regime via BaFin Germany 2024: DLT TSS hybrid platform authorisation for tokenized securities trading + settlement ; obtained permitted mid-2024 ; launches with EU small-cap tokenized equity.

Related terms

• MiCA — other EU crypto framework.