The Bank of Italy has asked the European Union to consider creating a tokenized version of SEPA, the main payments system in Europe. This would be a major step toward updating the region’s financial infrastructure with distributed ledger technology (DLT).
During a speech on May 4, 2026, Deputy Governor Chiara Scotti highlighted that tokenization is becoming more popular worldwide and said Europe needs to update its systems to stay competitive.
“With tokenization becoming more relevant, attention should turn… also to how Europe’s existing payment arrangements could evolve in that direction. From this perspective, a tokenized extension of SEPA could become an important area for reflection.”
Why a Tokenized SEPA Is Important
A tokenized SEPA could make it possible to:
- Settle transactions almost instantly
- Allow payments to be programmed and processed at any time, day or night
- Easily connect with tokenized real-world assets, stablecoins, and on-chain financial services
This proposal builds on current Eurosystem projects such as Appia, which focuses on tokenized wholesale markets, and Pontes, which tests DLT settlements. It also supports the digital euro initiative.
What This Means Strategically for 2026
This proposal strengthens Europe’s efforts to maintain digital independence as it faces competition from U.S. stablecoins and private blockchains. It encourages commercial banks to tokenize their money to stay competitive, while still keeping public money at the center.
For the crypto and blockchain industry, this move sends a clear message from institutions. It could speed up regulatory clarity, pilot projects, and new ideas for euro-based stablecoins and tokenized deposits. Banks, fintech companies, and asset managers are likely to benefit from more straightforward ways to handle on-chain payments and asset tokenization.
Outlook
The Bank of Italy has been one of the more forward-thinking central banks when it comes to tokenization. This new push adds energy to Europe’s wider tokenization plans and could shape EU policy soon.
As tokenized finance becomes more popular around the world, Europe’s active approach to updating SEPA puts it in a strong position to lead in secure and efficient digital payments. This is a positive sign for euro stablecoins, real-world assets, and the broader use of blockchain in traditional finance.
