The Bank of England opened a consultation on how central counterparties can accept tokenized versions of eligible collateral. It said existing rules allow this if the assets meet clearing standards, and its draft statement would clarify what firms must address when seeking approval, without creating new regulatory obligations.
The proposal covers collateral already accepted and eligible types not yet in use. The bank said tokenized collateral must be able to be valued, transferred and realized, including under stress. The consultation closes on Feb. 12, 2027.
