Bank of England opens tokenised collateral consultation
29 October 2026 UK
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The Bank of England (BoE) has opened a consultation outlining guidance for central counterparties' (CCPs) acceptance of eligible tokenised collateral.
The Bank says that tokenisation could be used to allow firms to respond more effectively to margin calls, improve collateral management, and aid innovation in central clearing, contributing to the UK鈥檚 wholesale digital financial markets strategy.
According to the BoE, the existing regulatory framework is 鈥渘ot a barrier鈥� for CCPs accepting eligible tokenised collateral, provided the necessary central clearing requirements are met, such as valuation, transfer, and realisation capabilities when needed, including in stressed conditions.
The Bank鈥檚 proposed supervisory statement aims to provide greater clarity on how it would assess tokenised collateral applications, consistent with the 鈥渟ame risk, same regulatory outcome鈥� principle.
Deputy governor for financial stability Sarah Breeden says: 鈥淭hrough today鈥檚 consultation, the Bank is further delivering its secondary objective for innovation in financial market infrastructure, while maintaining financial stability.
鈥淚t鈥檚 part of a major agenda between authorities and industry to enable the responsible adoption of tokenisation in financial markets.鈥�
The Bank says that tokenisation could be used to allow firms to respond more effectively to margin calls, improve collateral management, and aid innovation in central clearing, contributing to the UK鈥檚 wholesale digital financial markets strategy.
According to the BoE, the existing regulatory framework is 鈥渘ot a barrier鈥� for CCPs accepting eligible tokenised collateral, provided the necessary central clearing requirements are met, such as valuation, transfer, and realisation capabilities when needed, including in stressed conditions.
The Bank鈥檚 proposed supervisory statement aims to provide greater clarity on how it would assess tokenised collateral applications, consistent with the 鈥渟ame risk, same regulatory outcome鈥� principle.
Deputy governor for financial stability Sarah Breeden says: 鈥淭hrough today鈥檚 consultation, the Bank is further delivering its secondary objective for innovation in financial market infrastructure, while maintaining financial stability.
鈥淚t鈥檚 part of a major agenda between authorities and industry to enable the responsible adoption of tokenisation in financial markets.鈥�
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