Published by Global Banking & Finance Review®
Posted on January 29, 2026
1 min readLast updated: January 29, 2026
Add as preferred source on GoogleThe Bank of England is exploring the use of more tokenised assets as collateral, as discussed by Sasha Mills in London.
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.
The BoE last year consulted on plans to start permitting tokenised assets as eligible collateral.
“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.
(Reporting by Phoebe Seers; Editing by Tommy Reggiori Wilkes)
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.
Tokenised assets are physical or digital assets that have been represented as digital tokens on a blockchain, enabling easier transfer and ownership verification.
The Bank of England is the central bank of the UK, responsible for monetary policy, issuing currency, and maintaining financial stability.
Regulatory collateral refers to assets that financial institutions must hold to meet regulatory requirements, ensuring they can cover potential losses.
Blockchain technology enhances transparency, security, and efficiency in financial transactions by providing a decentralized ledger for recording transactions.
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