🏦 The Bank of England opens the door to tokenized collateral. But could faster settlement create new risks? The Bank of England has outlined its supervisory approach to allowing central counterparties to accept tokenized traditional assets as collateral. ⚡ Faster transfers could improve margin management and reduce settlement friction. But our latest opinion article raises a critical question: What happens when collateral moves instantly, but traditional banking liquidity cannot keep pace? The promise of atomic settlement comes with operational and liquidity challenges that financial institutions cannot ignore.