Bank of England opens consultation on tokenized collateral for clearing
Summary
The Bank of England is consulting on guidance for central counterparties seeking approval to accept tokenized versions of eligible collateral. The draft clarifies how firms should address existing and proposed collateral types under current approval processes, without adding regulatory obligations. The BoE says tokenized assets must remain easy to value, transfer and realize, including during market stress, while faster cross-border movement could help firms meet margin calls. The consultation closes Feb. 12, 2027; the BoE expects to publish its response and rules later this quarter.
