Deutsche Börse executive says tokenization is reshaping market infrastructure, not replacing it

Traders Union
All News
Crypto News
Tokenization is reshaping market infrastructure, not replacing it

Traditional infrastructure remains central

Kölzer emphasized that trusted intermediaries will remain essential even as tokenized assets expand. He said risk management, supervision and orderly market functioning become more critical, not less, in a blockchain-enabled environment. According to him, technology increases the need for resilience and transparency rather than eliminating institutional oversight. Deutsche Börse does not view tokenization as competitive displacement but as a strategic extension of its existing infrastructure.

The executive said the group intends to apply the same standards of compliance and operational robustness to tokenized products as to traditional securities. He added that regulated venues reduce uncertainty for clients seeking exposure to digital or tokenized assets. Addressing criticism of so-called “paper Bitcoin,” he argued that regulated infrastructure helps safeguard market integrity when offering synthetic or derivative exposure. The company’s approach, he said, is consistent across crypto assets and tokenized instruments.

Regulation and European competitiveness

Tokenized assets have risen roughly 18% year-to-date, but expansion has revived debate over regulatory clarity and investor protections. Critics warn that backing structures for commodity-based RWAs and stablecoins may vary across jurisdictions, creating uneven safeguards.

In early February, tokenization platform Securitize urged the European Union to amend its DLT Pilot Regime, arguing that restrictive asset scopes could leave the bloc trailing the United States. Kölzer said Deutsche Börse supports efforts to refine regulatory frameworks and align them with market demand. He pointed to existing rules such as the Markets in Financial Instruments Directive (MiFID) as a foundation for scaling tokenization within Europe.

The exchange operator views regulatory evolution as necessary to attract capital and innovation. Kölzer said clearer rules would accelerate adoption while preserving investor confidence. Despite ongoing policy debates, Deutsche Börse maintains that Europe can remain competitive if it modernizes within established supervisory structures.

Recently we wrote that Deutsche Bank is expanding its use of Ripple’s blockchain-based infrastructure in a move aimed at overhauling traditional cross-border payment systems. The initiative reflects a broader push among major financial institutions to modernize legacy banking rails using distributed ledger technology (DLT).

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.