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Bank of England to consult on tokenised collateral - Finance news and analysis from Global Banking & Finance Review
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Bank of England to consult on tokenised collateral

Published by Global Banking & Finance Review

Posted on October 29, 2026

1 min read

· Last updated: October 29, 2026

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Bank of England Announces Consultation on Tokenised Collateral for CCPs

Bank of England Announces Consultation on Tokenised Collateral for CCPs

Overview of the Bank of England's Consultation

Background and Purpose

LONDON, Oct 29 (Reuters) - The Bank of England said on Thursday it was launching a consultation on the requirements central counterparties need to meet to accept tokenised collateral, which could make it easier to meet margin calls and manage collateral more broadly.

Regulatory Framework for Tokenised Collateral

"The Bank considers the existing regulatory framework is not a barrier for CCPs accepting tokenised forms of eligible collateral, provided the collateral meets the standards required in central clearing," the BoE said.

Details of the Supervisory Statement

The BoE said the supervisory statement it is consulting on set out more details of the proposed standards.

Reporting and Editorial Information

(Reporting by David Milliken; editing by William James)

Key Takeaways

  • The BoE confirms that the current regulatory framework does not prohibit CCPs from accepting tokenised collateral, if it meets central clearing eligibility standards (bankofengland.co.uk)
  • The consultation provides more detail on proposed standards for tokenised collateral acceptance, aligning with broader UK efforts on tokenisation in wholesale markets (fca.org.uk)
  • This initiative complements parallel EU work—ESMA’s call for evidence on tokenised collateral in central clearing—to ensure cross-border readiness and regulatory coherence (esma.europa.eu)

References

Frequently Asked Questions

What is the Bank of England consulting on?
The Bank of England is consulting on requirements for central counterparties to accept tokenised collateral.
Why is tokenised collateral important for CCPs?
Tokenised collateral can make it easier to meet margin calls and manage collateral more broadly.
Does the current regulatory framework support tokenised collateral?
Yes, the Bank of England states the current regulatory framework does not prevent CCPs from accepting tokenised eligible collateral if standards are met.
What does the BoE's supervisory statement address?
The statement provides more details of the proposed standards for accepting tokenised collateral.

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