The European Union’s (EU) main financial regulator has made AI and tokenization—where assets are traded on blockchains rather than through traditional financial markets—key priorities for banking regulators in EU member states to focus on for 2027.
The European Securities and Markets Authority (ESMA) said it will work with national authorities to see how banks and other financial services firms use AI and tokenization to innovate while ensuring consumers and investors remain protected, adding that it “will remain flexible to address future technological developments as they emerge,” such as advanced “frontier” AI.
