According to Golden Finance, the legislation passed by the EU last year created significant regulatory advantages for banks to tokenize traditional assets, making its handling more lenient than in most parts of the world. This week, the European Banking Authority (EBA) published final technical standards, largely following the guidelines of the Basel Committee on Banking Supervision (BCBS) and primarily applicable to cryptocurrencies. However, EU legislation overturned the conservative approach to tokenizing traditional assets, explicitly treating them equally with traditional assets without any additional conditions. EU banks can handle tokenized securities on any type of blockchain without extra capital requirements; meanwhile, banks in other regions that follow Basel Committee guidelines must apply a maximum risk weight of 1250% when holding similar assets on unlicensed networks. This regulatory difference also extends to the stablecoin sector, giving Europe a unique advantage in institutional tokenization and the digitization of traditional financial instruments.