ESMA Explores Tokenized Collateral for EU Clearinghouses
The consultation examines liquidity, ownership and settlement risks as banks and investors use tokenized assets to meet margin calls.
- On Friday, The European Securities and Markets Authority launched a consultation seeking evidence on whether tokenized collateral used by European clearinghouses can be accessed and liquidated during market crises.
- The review follows the adoption of blockchain-based collateral services by European institutions, including Eurex Clearing, which began processing live transactions using distributed ledger technology in July 2025 to meet margin requirements.
- Regulators are examining technical risks, including potential redemption delays and legal enforceability, while reviewing how The European Central Bank Pontes platform interacts with existing financial infrastructure.
- ESMA Chair Verena Ross emphasized the need for legal certainty and safe, interoperable infrastructure, noting that while the authority has not proposed a ban, it will evaluate whether existing rules remain suitable.
- Banks, clearinghouses, and technology providers have until January 15, 2027, to submit evidence, after which ESMA will assess the findings during the first quarter of 2027 to determine if further regulatory measures are necessary.
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Cointelegraph
The New York LedgerESMA Explores Tokenized Collateral for EU Clearinghouses
ESMA is seeking industry feedback on the legal, liquidity and operational risks of tokenized collateral before deciding whether additional EU regulatory measures are necessary.
ESMA opened a consultation to determine whether European rules adequately protect clearing houses when accepting tokenised assets as collateral. The body focuses on legal, operational and liquidity risks, and will receive comments until 15 January 2027.
ESMA Explores Tokenized Collateral for EU Clearinghouses - Invest In Crypto News
The European Securities and Markets Authority (ESMA) wants evidence that clearinghouses can access tokenized collateral and turn it into cash if markets come under stress. ESMA published a call for evidence Friday to seek industry feedback on the implications of tokenized collateral. “We must create the conditions for tokenized markets to operate safely and at […]
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