Bank of England Opens Consultation on Clearing Tokenized Collateral

Odaily reports that the Bank of England (BoE) has opened a consultation on central counterparties (CCPs) accepting digital representations of eligible collateral, and stated that current rules already permit the use of such assets when they meet clearing standards. The proposed supervisory statement will clarify what CCPs need to address when submitting applications under the existing approval process, without creating new regulatory obligations.

The Bank of England stated that tokenized collateral must remain capable of valuation, transfer, and liquidation under stress scenarios, and that faster cross-jurisdictional asset transfers could help firms meet margin requirements. The consultation will close on February 12, 2027, and the central bank expects to publish its policy response and related rules later this quarter. (Cointelegraph)