ESMA seeks evidence on tokenized collateral in clearing

The European Securities and Markets Authority launched a call for evidence on whether and how tokenized collateral could be used in central clearing. Market participants have until January 15, 2027 to comment on legal, liquidity, custody and operational questions raised by ledger-based representations of assets.

Central counterparties rely on collateral that can be valued, controlled and liquidated reliably during a member default. Moving records or transfers onto a blockchain does not automatically establish equivalent enforceability or rapid access to the underlying assets.

The consultation is exploratory rather than an approval of particular tokens for clearing. It signals regulators are examining how tokenization could fit the most risk-sensitive parts of traditional market infrastructure.