Finance
BoE is open to accepting more tokenised assets as collateral, Mills says
Published by Global Banking and Finance Review
Posted on January 29, 2026
1 min readLast updated: January 29, 2026
Quick Summary
The Bank of England is exploring the use of more tokenised assets as collateral, as discussed by Sasha Mills in London.
Bank of England Considers Broader Acceptance of Tokenised Collateral
Exploring Tokenised Assets as Collateral
LONDON, Jan 29 (Reuters) - The Bank of England is considering expanding the range of assets that could be accepted as collateral in tokenised form, Sasha Mills, Executive Director of Financial Market Infrastructure, said on Thursday.
Background on Tokenised Assets
The BoE last year consulted on plans to start permitting tokenised assets as eligible collateral.
Industry Perspectives on Tokenization
“Some thought is needed on traditional assets that are not already acceptable as regulatory collateral, but which the industry would like to see tokenized and then used as collateral,” Mills said at an event in London.
Future Considerations for Regulatory Collateral
(Reporting by Phoebe Seers; Editing by Tommy Reggiori Wilkes)
Key Takeaways
- •The Bank of England is considering more tokenised assets as collateral.
- •Sasha Mills discussed the potential expansion at a London event.
- •The BoE consulted on tokenised assets as collateral last year.
- •Industry desires tokenization of traditional assets for collateral use.
- •Future regulatory considerations are being explored.
Frequently Asked Questions about BoE is open to accepting more tokenised assets as collateral, Mills says
1What is tokenised collateral?
Tokenised collateral refers to assets that have been converted into digital tokens on a blockchain, allowing them to be used as collateral in financial transactions.
2What are tokenised assets?
Tokenised assets are physical or digital assets that have been represented as digital tokens on a blockchain, enabling easier transfer and ownership verification.
3What is the role of the Bank of England?
The Bank of England is the central bank of the UK, responsible for monetary policy, issuing currency, and maintaining financial stability.
4What is regulatory collateral?
Regulatory collateral refers to assets that financial institutions must hold to meet regulatory requirements, ensuring they can cover potential losses.
5What is the significance of blockchain in finance?
Blockchain technology enhances transparency, security, and efficiency in financial transactions by providing a decentralized ledger for recording transactions.