The Bank of England has opened a consultation on the acceptance of tokenized collateral by central counterparties. Central counterparties would need to demonstrate that these assets meet liquidity and risk-management requirements. The draft supervisory statement would set out what they must address in applications, without creating new regulatory obligations. Tokenized collateral would have to remain capable of being valued, transferred and realized, including during stressed conditions, while faster movement across jurisdictions could help firms meet margin calls. The consultation closes on February 12, 2027, and the Bank of England expects to publish its policy response and related rules later in the quarter.
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