ME News reports that on October 29 (UTC+8), the Bank of England (BoE) launched a consultation on allowing central counterparties (CCPs) to accept digital versions of eligible collateral, stating that current rules permit such assets to be used when they meet clearing standards. The proposed regulatory statement will clarify what CCPs must specify when submitting applications under existing approval processes, without introducing new regulatory obligations.
The Bank of England stated that tokenized collateral must remain valuatible, transferable, and liquidatable under stress scenarios, and faster cross-jurisdictional asset transfers could help firms meet margin requirements. The consultation period ends on February 12, 2027, and the central bank expects to announce its policy response and related rules later this quarter. (Source: ODAILY)
BoE Consults on Tokenized Collateral for CCPs
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Summary
The Bank of England (BoE) has launched a consultation on enabling central counterparties (CCPs) to accept tokenized versions of eligible collateral. Current rules permit such assets if they meet clearing standards, and the proposed guidance aims to streamline approval without imposing new obligations. Tokenized collateral must remain valuable, transferable, and liquid under stress conditions. Faster cross-jurisdictional transfers could assist firms in meeting margin calls. The consultation runs until February 12, 2027, with policy and rules expected this quarter. This initiative aligns with broader CFT measures and may accelerate the adoption of risk-on assets in regulated markets.
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