# Madouros Says Tokenization Could Modernize Europe’s Capital Markets

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/55440
Published: 2026-11-12T13:25:03.000Z
Updated: 2026-11-12T13:25:03.000Z
Section: Regulation

> He identified central bank money, legal clarity and interoperable bank deposits as foundations for a more integrated tokenized market.

Tokenized finance could help modernize and integrate European capital markets, but scaling it safely will require stronger monetary, legal and operational foundations, Central Bank of Ireland Deputy Governor Vasileios Madouros said.

Madouros delivered a keynote at the European Capital Markets Institute’s annual conference in Brussels.

Central bank money remains the safest and most liquid asset in the economy and anchors trust by serving as the ultimate settlement asset for wholesale transactions. The Eurosystem is extending that role to tokenized markets.

Legal and regulatory clarity can support resilience and private-sector innovation, while rules must remain flexible as tokenized market structures evolve.

Tokenized finance can enable faster settlement, reduce counterparty exposure, offer 24/7 availability and lower costs. Shared ledgers could make tokenized securities more portable across borders, reducing market-making costs and deepening liquidity.

Madouros identified nonbank finance as another major shift shaping European markets. He also called for interoperable tokenized deposits across Europe, where further private-sector momentum is needed.

Since September, wholesale on-chain transactions in tokenized assets can settle in central bank money through the Eurosystem’s Pontes service.