The European Central Bank (ECB) has emphasized that tokenization could enhance European capital markets, provided it is supported by central bank money, interoperable infrastructure, and suitable regulation. According to NS3.AI, the ECB's macroprudential report, released on April 13, suggests that Distributed Ledger Technology (DLT) could bolster savings and investment functions within the European Union. The report notes that the potential benefits of DLT are contingent upon how infrastructure and policy authorities manage emerging risks.