Token City is advancing steadily toward launching its innovative tokenized stock exchange, Token City Exchange, after receiving positive evaluation from Spain’s National Securities Market Commission (CNMV) during its sandbox testing phase. This milestone marks an important development for financial markets in Spain and Europe, highlighting increasing acceptance and integration of blockchain technology into traditional finance. Token City Exchange aims to revolutionize the issuance, trading, and settlement of diverse financial instruments like stocks and bonds by utilizing distributed ledger technology (DLT). Unlike traditional exchanges that depend heavily on intermediaries, this platform enables direct transactions on a public blockchain, boosting transparency, efficiency, and security. Through DLT, settlements occur in real-time, reducing the delays and costs linked to conventional clearing processes. During CNMV-supervised sandbox testing, key platform features were rigorously examined, including digital wallet creation, seamless trading of financial assets, dividend payment execution, and the implementation of the ERIR (Responsible Entity for Registration and Record). The ERIR plays a crucial role in ensuring accurate registration and traceability of blockchain transactions, thus maintaining the exchange’s integrity and reliability. Although test assets were simulated to replicate real trading conditions, all transactions, such as buying and selling, utilized actual electronic money—EUROe—allowing the platform’s financial workflows to be realistically assessed for operational performance and regulatory compliance. A primary goal of Token City Exchange is to enable financing opportunities for small and medium-sized enterprises (SMEs). By leveraging blockchain and tokenization, the platform seeks to democratize capital market access, allowing SMEs to raise funds more efficiently and transparently than traditional channels. This aligns with broader economic objectives to support entrepreneurship and innovation within Europe. This initiative aligns closely with new European regulatory frameworks and the 2023 reform of Spanish Securities Market Law, which legally recognize and validate blockchain-based financial instruments.

These regulatory changes provide a solid legal foundation for tokenized assets, encouraging innovation while ensuring investor protection and market stability. To comply with these regulations, Token City is pursuing two key licenses: one to operate as a securities agency, expected by September or October, and another under the Pilot Regime—a regulatory sandbox facilitating fintech innovation—which should be secured within six months. Upon obtaining these licenses, Token City Exchange plans to commence operations in Q1 2026. Its launch is eagerly awaited by market participants, regulators, and tech enthusiasts who see it as a pioneering integration of blockchain into mainstream financial markets. The development represents a significant step toward digitizing and modernizing financial trading infrastructure by combining blockchain strengths with supportive regulatory frameworks. Experts predict platforms like Token City Exchange could revolutionize securities issuance and trading, enhancing accessibility, lowering costs, and boosting security for both issuers and investors. The focus on SMEs further reflects a commitment to inclusive economic growth and innovation in the European Union. Additionally, the CNMV’s favorable reception during the sandbox phase highlights a growing openness among traditional regulators to embrace technological advancements while maintaining stringent oversight. This balance is essential to ensure new financial products provide tangible value without compromising market integrity or investor confidence. In summary, Token City Exchange is at the forefront of a transformative shift in financial markets, combining cutting-edge technology with regulatory prudence. Its successful launch will likely accelerate the wider adoption of tokenized financial instruments, fostering new business models and investment opportunities across Europe and beyond.