The EU DLT pilot program is stalled, and ESMA is seeking a breakthrough

The pilot system of distributed ledger technology (DLT) launched by the European Union has not shown any improvement in the past year, and no infrastructure has been authorized yet. The European Securities and Markets Authority (ESMA) did not provide a progress report, but instead issued a letter pointing out five major challenges, including cash on chain issues, competitive challenges, and trading volume restrictions. ESMA calls for the possible extension of the pilot system and relaxation of trading volume restrictions to attract more participants. Among them, NPEX, the Dutch SME Stock Exchange, is one potential applicant.