The Bank of England launched a consultation on 29 October 2026 proposing guidance for central counterparties (CCPs) that want to accept tokenised forms of eligible collateral. The consultation closes on 12 February 2027.
The Bank says its existing regulatory framework does not prevent CCPs from accepting tokenised collateral, provided it meets the standards required for central clearing. It must, for example, remain possible to value, transfer and realise the collateral when needed, including in stressed conditions.
The proposed Supervisory Statement is intended to give CCPs and their participants greater clarity on how the Bank would assess applications involving tokenised collateral. The Bank says different arrangements may meet the same regulatory outcomes in different ways, consistent with the principle of “same risk, same regulatory outcome.”
Tokenisation could make it quicker and more efficient to mobilise and manage collateral, including across jurisdictions, the Bank said. It could help firms respond to margin calls and support collateral management and innovation in central clearing. These are potential benefits described by the Bank, not outcomes established by the consultation.
The Bank is inviting responses from across the industry, including CCPs, market participants, infrastructure providers, technology firms and other stakeholders exploring tokenised collateral in central clearing.
Deputy Governor for Financial Stability Sarah Breeden said the consultation is part of work by authorities and industry to support responsible adoption of tokenisation while maintaining financial stability.
The consultation forms part of the Bank’s broader work with the Financial Conduct Authority, HM Treasury and industry on tokenisation and the development of UK digital wholesale financial markets.
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