Tokenization would end fragmentation in the euro area, ECB indicates
Business

Tokenization would end fragmentation in the euro area, ECB indicates

SAPO Notícias28 August 2026 at 18:49

Tokenization, which consists of converting, for example, a bond or other asset into digital units called 'tokens', could help overcome European financial fragmentation, said today Isabel Schnabel, member of the Executive Board of the European Central Bank (ECB).

Isabel Schnabel spoke about the potential of this technology during a public address, highlighting that tokenization may represent a solution to the fragmentation problems observed in the euro area.

The ECB has been closely monitoring technological developments in the financial sector, considering that the digitalization of assets can bring greater integration to European markets.

This position emerges in the context of ongoing debates on how to strengthen financial stability and market integration in the euro area.

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