Bank of England consults on tokenised collateral in central clearing
Central bank says existing rules are not a barrier, provided tokenised collateral meets central-clearing standards, including being capable of being valued, transferred and realised when needed
The Bank of England has launched a consultation on central counterparties (CCPs) accepting tokenised forms of eligible collateral. The Bank said tokenisation could offer opportunities for quicker and more efficient mobilisation and management of collateral, including across jurisdictions, and could contribute to the UK's wholesale digital financial markets strategy and help firms respond more effectively to margin calls.