Definition ∞ EU Capital Markets encompass the financial markets operating within the European Union, facilitating the raising and trading of capital for businesses and governments. These markets include stock exchanges, bond markets, and various other financial instruments and platforms. They are governed by a comprehensive set of regulations aimed at ensuring transparency, efficiency, and investor protection across member states. The integrity and liquidity of these markets are crucial for economic stability and growth.
Context ∞ The integration of digital assets and blockchain technology into EU Capital Markets is a significant current discussion, driven by initiatives like the DLT Pilot Regime. Regulators are assessing how existing securities laws apply to tokenized assets and seeking to create a harmonized framework. The future will see continued efforts to adapt these markets to technological advancements while maintaining regulatory oversight and market stability.