MFSA launches consultation on tokenisation of financial instruments and real-world assets

The Malta Financial Services Authority (MFSA) has launched a public consultation exploring the tokenisation of financial instruments and real-world assets, as the regulator assesses how distributed ledger technology (DLT) could be integrated into Malta’s financial services framework.

Tokenisation refers to the digital representation of ownership rights in financial instruments or physical assets through blockchain-based systems. The process has increasingly gained traction internationally, particularly following developments such as the EU’s DLT Pilot Regime and wider experimentation across global capital markets.

Through the consultation, the MFSA is seeking feedback from industry stakeholders and the public on Malta’s readiness for tokenised markets, the most viable asset classes for tokenisation, and the legal, regulatory and infrastructural requirements needed to support such activity locally.

The Authority stated that the initiative forms part of a broader effort to support innovation while maintaining investor protection, market integrity and financial stability.

Among the key areas being examined are settlement systems, token registries, interoperability between DLT platforms, custody arrangements, smart contract enforceability and the operational risks associated with tokenised financial products.

The consultation also explores whether tokenised financial instruments can be accommodated within existing EU legislative frameworks or whether additional national guidance and regulatory measures may eventually be required.

The MFSA noted that tokenisation could potentially improve efficiency, transparency and automation within financial markets while also widening access to investment opportunities.

The Authority is particularly interested in gathering feedback on practical operational challenges, infrastructure gaps and possible use cases that could support the responsible development of tokenised financial markets in Malta.

Industry participants, including investment firms, crypto-asset service providers (CASPs) and other market operators, are encouraged to contribute to the consultation process.

Submissions are open until 30th June 2026 and can be sent to fintech@mfsa.mt.