ESMA seeks evidence tokenized collateral can be cashed out in crisis
ESMA is seeking industry feedback on whether EU clearinghouses can reliably access and convert tokenized collateral into cash during market stress, particularly if a clearing member defaults. Its review covers tokenized versions of traditionally held assets and assets issued directly on distributed ledgers, including links with stablecoins, central bank money and tokenized deposits. ESMA is examining liquidity risks such as redemption delays and transfer restrictions, as well as whether token transfers provide enforceable rights to underlying assets. The review comes as tokenized collateral enters live clearing operations: Eurex launched a distributed-ledger collateral service in July 2025, and JPMorgan completed its first transaction for Dutch pension investor PGGM. ESMA also noted that the Eurosystem’s Pontes settlement system may connect blockchain infrastructure with existing systems.
