Tokenization and the European Market
Piero Cipollone stated that tokenization creates a rare opportunity. The goal is to design a European market for digital assets that is integrated from the outset. This approach essentially lays the foundation for a digital capital markets union.
Tokenization refers to converting real-world assets such as stocks, bonds, or real estate into digital tokens on a blockchain. These tokens can be traded or settled more efficiently than traditional assets, reducing costs and increasing transparency. A real-world example is the European investment bank experimenting with tokenized bonds, allowing instant settlement between investors and the issuer. By digitizing assets, Europe can create markets that operate around the clock, bridging the gap between traditional finance and the digital economy.
the @RibbitCapital token letter is incredible, highly recommended reading – it links together tokens in AI, payments, and crypto in a clear manner.
“tokenization is the process of rendering the world for computers” and by proxy, NHI, AGI, robots, and more pic.twitter.com/bRM1vnzMwv
— Meltem Demirors (@Melt_Dem) November 6, 2025
This trend is not just theoretical. According to data from the European Securities and Markets Authority, interest in digital asset adoption among institutional investors in Europe has doubled over the past two years. Banks, asset managers, and fintech startups are exploring tokenized securities as a way to enhance liquidity, improve compliance, and attract new investors. Cipollone’s vision reflects the European Central Bank’s proactive approach to shaping a digital capital ecosystem rather than reacting to fragmented developments across member states.
NEW: EUROPEAN CENTRAL BANK EXECUTIVE BOARD MEMBER PIERO CIPOLLONE SAYS “TOKENISATION CREATES A RARE OPPORTUNITY TO DESIGN A EUROPEAN MARKET FOR DIGITAL ASSETS THAT IS INTEGRATED FROM THE OUTSET, IN OTHER WORDS, A DIGITAL CAPITAL MARKETS UNION”
SOURCE: https://t.co/nulY8sox3Vpic.twitter.com/XrfhLtXhTr
— DEGEN NEWS (@DegenerateNews) December 8, 2025
An integrated European market means different countries’ financial systems can operate seamlessly under shared standards. Tokenization can support this by creating uniform protocols for issuance, settlement, and custody of digital assets. This reduces barriers for cross-border investment, simplifies compliance, and encourages innovation while maintaining regulatory oversight. For example, a German investor could trade tokenized French corporate bonds almost instantly, with lower fees and reduced operational risk.
Developments in Tokenization
Ondo Finance announced that the SEC has closed its confidential Biden-era investigation without any charges. The 2024 inquiry examined whether Ondo’s tokenization of certain assets and the ONDO token complied with securities laws. Despite intense regulatory scrutiny, Ondo remained committed to safely and compliantly tokenizing U.S. Treasuries and publicly listed equities.
The SEC has formally closed a confidential Biden-era investigation into Ondo — without any charges.
The inquiry began in 2024, focused on whether Ondo’s tokenization of certain real-world assets complied with federal securities laws as well as whether the ONDO token was a… pic.twitter.com/yV4xVX7Qrx
— Ondo Finance (@OndoFinance) December 8, 2025
The closure marks a milestone for tokenization, signaling a shift toward frameworks that support modernized market infrastructure. With adoption accelerating, Ondo is positioned to make tokenized Treasuries and equities core components of U.S. capital markets. The company will outline its next roadmap phase on February 3, 2026, at the Ondo Summit in New York.