ESMA Recommends Use of DTI Codes for DLT Pilot Regime

The DTI Foundation, a division of Etrading Software, has so far issued ISO-standard DTI codes for over a thousand of the most commonly traded digital assets.

ESMA (European Securities and Markets Authority) has recommended the use of ISO-standard DTI (Digital Token Identifier) codes in its DLT pilot regulatory regime.

DTI codes are issued by the DTI Foundation, a trading division of Etrading Software, which was nominated in March 2021 to become the exclusive Registration Authority for the new ISO standard for DTIs.

The DTI Registry was launched in July 2021 with identifiers for the top 100 cryptocurrencies by market cap, bringing ISO-based standardisation to the digital asset and crypto trading marketplace. A registration service was later also opened to enable market participants to apply for additional identifiers to be issued.

To date, the DTI Foundation has issued DTI codes for over a thousand of the most commonly traded digital assets, with more codes being added each day.

ESMA’s DLT Pilot Regulation will start applying on 23 March 2023, allowing market participants to seek authorisation to operate different types of DLT-based market infrastructures, such as multilateral trading facilities and settlement systems.

Market participants will also be able to use blockchains for the issuance and trading of tokenised stocks, bonds and funds. The regime extends MiFIR to tokenised financial instruments, to bring pre- and post-trade transparency and market abuse monitoring to DLT-based securities.

DTI codes will assist market participants, regulators and other public authorities to unambiguously identify digital assets and DLTs, and can be used for regulatory reporting, AML/CFT and systemic risk monitoring. For ESMA’s DLT Pilot regime, it will also enable monitoring of market data for tokenised securities using globally standardised reference data.

“We are proud to operate this critical market infrastructure on behalf of ISO,” said Sassan Danesh, CEO of Etrading Software. “Our mission is to increase market stability, transparency and efficiency in the digital asset space and we will continue to work with public authorities and industry to provide this vital service to the benefit of all stakeholders.”

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