Luxembourg, 12 February 2026 – After the early hype, tokenisation has dropped down the agenda quite a bit for many market participants. Some sceptics even argue it will remain a niche phenomenon. “The opposite is true: use cases that used to be in pilot mode two years ago will move into day-to-day operation in 2026”, says Stephan Blohm, Board Member at Luxembourg-based financial services provider securities.lu.
From commodities and real estate to works of art, the digital representation of rights and claims across a wide range of assets is intended to enhance security, streamline transactions and, in some cases, make previously illiquid assets tradable in the first place. Despite these promises, tokenisation has not yet achieved broad adoption. But 2026 marks a turning point. “In securitisation, tokenisation is now becoming a core method”, Blohm says.
Luxembourg moved early with blockchain legislation, creating a practical legal basis for technologies such as tokenisation and delivering immediate benefits for securitisation structures. On that foundation, market infrastructure has matured. “While others are still debating proofs of concept, Luxembourg is moving ahead: regulatory clarity has been in place for some time, and that has translated into real demand”, Blohm points out.
At EU level, the groundwork has also been laid for a more harmonised legal framework for tokenised instruments. “This year, regulation will begin to deliver at scale for the first time”, Blohm adds. Issuers in Luxembourg, in particular, are making targeted use of this legal certainty for tokenised securitisations, supported by clearly defined roles for paying agents, custodians and other service providers. Where tokenised products (digital securities) were previously issued only selectively, they are now increasingly being issued, administered and traded on a regular basis.
With the legal and technical foundations in place, tokenisation is developing into a standard tool. Institutional investors are now approaching it less as a technology experiment and more on commercial grounds. The benefits are becoming tangible, especially in cross-border transactions: faster settlement, fewer operational frictions and improved process resilience. “For Luxembourg securitisation structures, the most concrete advantages are automated payment flows, greater transparency and more efficient investor reporting”, says Blohm.
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