The Bank of England releases a regulatory consultation document on tokenized collateral
2026-10-29 22:05:39
According to CoinMeta, Wu said that on October 29, 2026, the Bank of England issued a consultation document seeking industry feedback on its proposed regulatory expectations for central counterparties (CCP) to accept tokenized collateral. The consultation period ended on February 12, 2027. The document states that the existing regulatory framework does not prevent CCP from accepting tokenized forms of qualified collateral, such as tokenized government bonds. This draft regulatory statement follows the principle of "same risk, same regulatory outcome" and clarifies regulatory considerations regarding settlement finality, liquidity and valuation, credit and concentration risks, operational resilience, and custody security. In addition, the Bank of England is also seeking public feedback on the feasibility, potential risks, and practical considerations of including compliant stablecoins, tokenized money market funds (TMMF) shares, and tokenized gold as collateral in CCP in the future.
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