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Security Tokens Could See Rapid Growth in Europe, Outpacing Cryptocurrencies

Security tokens could take off in Europe, potentially surpassing market volume for cryptos by 2026.

European union flag against parliament in Brussels

Security tokens, or digitized versions of traditional investments like stocks, bonds and real estate, could surpass the market volume for cryptocurrencies in the next five years.

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That’s according to a new study by Plutoneo, a German-based blockchain consulting firm in partnership with the Frankfurt School of Finance and Management and digital custody provider Tangany.

The market volume for security tokens in Europe is expected to reach 918 billion euros by 2026, according to the study, published May 21.

  • “The security tokens market is evolving dynamically and can still be considered to be in its infancy phase,” according to the study.
  • The authors estimate European security token growth of around 81% per year over the next five years across assets such as real estate, debt and fiat currencies.
  • Upcoming regulations are expected to align with the aim of the European Commission to create a “harmonized digital asset market,” according to the study.
  • “This regulation shall be issued by the latest 2023 by introducing MiCA (Markets in Crypto-Assets) which can be considered a pendant to existing MiFID II regulation of traditional financial instruments and activities.”
Chart shows projection of the digital asset market size Europe from 2018 to 2026 in EUR bn
Chart shows projection of the digital asset market size Europe from 2018 to 2026 in EUR bn

Damanick Dantes

Damanick was a crypto market analyst at CoinDesk where he wrote the daily Market Wrap and provided technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio strategist and does not invest in digital assets.

Damanick Dantes