On 25 June 2025, the European Securities and Markets Authority (ESMA) issued a report on the Distributed Ledger Technology Pilot Regime (DLT Pilot Regime).

Background

The report has been prepared in accordance with Article 14 of Regulation (EU) 2022/858 on a Pilot Regime for Market Infrastructures based on Distributed Ledger Technology (DLTR). This requires ESMA to assess the functioning of the DLT Pilot Regime, including technical deployment, market performance, regulatory exemptions, and systemic risks and to advise the European Commission (Commission) on whether the DLT Pilot Regime should be extended, expanded, amended, and/or made permanent.

Findings

The report covers the operational period from the formal start of the application of the DLT Pilot Regime (23 March 2023) through to 31 May 2025. It focuses on DLT market infrastructures formally authorised under the DLT Pilot Regime.

The report finds that while uptake of the DLT Pilot Regime remains limited it has stimulated experimentation with DLT-based models for trading, settlement, and compliance. The report also recommends recalibrating the current thresholds as it feels that these are restricting wider participation.

Next steps

The Commission is expected to present its own report to the European Parliament and Council within three months of receipt of ESMA’s report. Depending on the Commission’s recommendations, the DLT Pilot Regime may be extended, amended, or converted into permanent regulation.