**[Citi Research: Tokenization Could Be a Key Path to Address EU Capital Market Fragmentation]** Golden Finance reports that Citi Research has released a report titled *"Reshaping European Capital Markets,"* highlighting that the efficiency of EU capital markets is constrained by highly fragmented infrastructure, tax systems, and legal frameworks. Tokenization is seen as a potential solution. The report notes that the EU currently has 36 central securities depositories and 13 central counterparties, most of which operate under monopolistic structures within their respective national markets. Additionally, barriers such as fragmented tax policies and legal discrepancies persist. Survey results show that 100% of respondents believe priority should be given to unifying legal, tax, and corporate action frameworks, favoring pan-European "regulations" over "directives" that require transposition by individual member states. Although support for options involving distributed ledger technology and digital assets stands at only 32%, when focusing on digital solutions, the popularity of tokenization for securities and collateral (36%) is three times higher than the use of AI in post-trade processing and reconciliation (12%). This reflects market concerns about addressing high settlement and custody costs through tokenization.