Ireland must seize opportunity to become leading European centre for digital finance, as international competition intensifies

• Ireland well-positioned to lead in tokenised funds, digital asset servicing and institutional digital finance
• International competition is intensifying, with jurisdictions such as Luxembourg, Switzerland, Singapore, the UK and the UAE adopting clearer strategies to position themselves in digital finance
• BPFI calls for dedicated National Digital Finance Strategy to provide a clear framework for Ireland’s next phase of market development

Monday 24^th August 2026 — Ireland has a significant opportunity to establish itself as a leading European centre for tokenised funds, digital asset servicing and institutional digital finance, according to Banking & Payments Federation Ireland (BPFI), as it calls for the introduction of a dedicated National Digital Finance Strategy. In a report published today, BPFI outlines the rapid changes that are taking place across the digital finance sector and warns that international competition is intensifying, with jurisdictions such as Luxembourg, Switzerland, Singapore, the UK and the UAE adopting clearer strategies to position themselves in digital finance.

Commenting on the report, Leah Donnelly, Head of Digital Assets, BPFI, said:

“In recent years, attention has been strongly focused on cryptocurrencies and exchanges. However, in 2026 the market has matured and is increasingly centred on the regulated digitalisation of financial services, including tokenised funds, digital asset servicing, custody, stablecoins, payments and financial market infrastructure. This is where Ireland has a real opportunity. Ireland is already one of Europe’s leading centres for international banking, funds, asset servicing, custody and fintech. As digital finance becomes more regulated, institutional and infrastructure-led, these existing strengths become even more relevant.”

Pointing to the scale of Ireland’s role in the market, Ms Donnelly continued: “Ireland and Luxembourg together account for 91% of global cross-border fund assets under management, with Ireland holding a particularly strong position in Exchange-Traded Funds (ETFs) and money market funds. This gives Ireland a strong foundation to lead in tokenised funds and digital asset servicing. However, other jurisdictions are moving quickly and becoming more visible internationally. Ireland has the substance, but we need to articulate it more clearly. A dedicated Digital Finance Strategy would help align existing strengths, support public and private sector coordination and provide a stronger international message for Ireland.”

She concluded: “This opportunity extends beyond Ireland alone. Tokenisation, digital money and digital financial infrastructure are increasingly being viewed as enablers of deeper and more integrated European capital markets. As the EU pursues its Savings and Investment Union objectives, Ireland’s strengths in funds, asset servicing and international banking provide a platform to support the next generation of European financial market infrastructure. By building on those strengths and positioning itself as a centre for tokenised funds, digital asset servicing and institutional digital finance, Ireland can strengthen its role within the European financial system while supporting more efficient, integrated and digitally enabled capital markets.”

The report makes seven key recommendations:

1. Develop a national Digital Finance Strategy to provide a clear framework for Ireland’s next phase of growth in tokenisation, digital asset servicing, custody, stablecoins and financial market infrastructure.
2. Compete on implementation, not regulation alone, by ensuring Ireland offers regulatory expertise, supervisory engagement, clarity and efficiency under MiCAR and related digital finance frameworks.
3. Build on Ireland’s existing financial services strengths, particularly in funds, asset servicing, custody, payments, fintech and international banking, rather than positioning digital finance as a standalone crypto-assets agenda.
4. Develop leadership in digital asset servicing and custody, leveraging Ireland’s concentration of global custodians, depositaries and asset servicers to support institutional demand for tokenised assets.
5. Strengthen Ireland’s digital finance talent ecosystem, expanding practical skills across technology, operations, risk, compliance, legal, tax, treasury and financial market infrastructure roles.
6. Create a distinctive national proposition for digital finance, centred on Ireland as Europe’s leading centre for tokenised funds, digital asset servicing and institutional digital finance.
7. Raise Ireland’s international profile through coordinated promotion by government, IDA Ireland, industry bodies and firms already active in tokenisation, custody and payments.