Central Bank of Ireland Launches DLT and Tokenisation Discussion Paper, March 2026

On 5 March 2026, the Central Bank of Ireland published Discussion Paper 12 (DP12), titled "Distributed Ledger Technology and Tokenisation in Financial Services." The paper is at the consultation stage; it does not constitute proposed rulemaking and carries no binding legal effect. The Central Bank invites written submissions by 5 June 2026, after which it will publish a feedback statement.

The Central Bank issued DP12 under its mandate to maintain monetary and financial stability and to ensure the financial system operates in the best interests of consumers, as set out in the Central Bank Act 1942 (as amended). The paper uses the discussion paper mechanism to solicit public input before any formal regulatory or legislative proposal is developed. The Central Bank has aligned DP12 with the EU Savings and Investment Union agenda, within which DLT and tokenisation serve a stated policy function.

DP12 addresses four subject areas relevant to crypto and Web3 market participants. It examines DLT's potential to transform financial infrastructure and enable new financial services products. It assesses opportunities, challenges, and risks from tokenisation, including legal and regulatory clarity, operational resilience, scalability, and interoperability. It also examines how DLT and tokenisation interact with existing financial intermediaries — investment funds, payment systems, and securities settlement — and asks whether those innovations deliver efficiency, transparency, and accessibility for users. Issuers of tokenised securities, DeFi protocol operators, custodians, and fund administrators operating in or targeting Irish or EU markets should treat DP12 as an early indicator of supervisory priorities and respond before 5 June 2026.

DP12 raises open questions rather than prescribing outcomes. The Central Bank has not proposed specific rules, set authorisation requirements, or committed to a timeline for formal rulemaking. The Central Bank's Deputy Governor stated that central bank money must remain at the heart of any future tokenised financial system, signalling a supervisory preference likely to influence future rulemaking on settlement assets and stablecoin design within the Irish and EU perimeter. The feedback statement following the consultation period will indicate whether the Central Bank proceeds to formal rulemaking or further policy development.

Source: Central Bank of Ireland, Press Release, "Central Bank of Ireland Launches Discussion Paper on Tokenisation and Distributed Ledger Technology in Financial Services," 5 March 2026, available at: https://www.centralbank.ie/news/article/press-release-discussion-paper-tokenisation-and-distributed-ledger-technology-in-financial-services-5-march-26; Discussion Paper 12 (DP12), available at: https://www.centralbank.ie/docs/default-source/publications/discussion-papers/discussion-paper-12/dp12-dlt-tokenisation-in-financial-services.pdf. Verified 10 March 2026.

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