Bank of England opens the door to tokenised collateral at clearing houses

It is opening for consultation a draft set of supervisory criteria for central counterparties (CCPs) that wish to accept tokenised versions of the collateral they already admit. It maintains that the current framework is not an obstacle provided that such collateral can be valued, transferred and realised, including in times of stress, under the principle of “same risk, same regulatory outcome”.

It expects tokenisation to allow collateral to move faster, including across borders. Deputy Governor Sarah Breeden speaks. The consultation closes on 12 February 2027 and forms part of joint work with the FCA and HM Treasury. It does not mention stablecoins

The Bank of England has today launched a consultation to support the acceptance by central counterparties (CCPs) of tokenised forms of eligible collateral.Published on 29 October 2026

Press release

The Bank of England has today launched a consultation to support the acceptance by central counterparties (CCPs) of tokenised forms of eligible collateral.

Tokenisation could offer opportunities for faster and more efficient collateral mobilisation and management, including across jurisdictions. This could help firms respond more effectively to margin calls, improve collateral management and drive innovation in central clearing, thereby contributing to the UK’s wholesale digital financial markets strategy.

The Bank considers that the existing regulatory framework does not constitute an obstacle to clearing houses accepting tokenised collateral, provided that such collateral meets the standards required in central clearing. For example, tokenised collateral must be capable of being valued, transferred and liquidated when necessary, including in stress situations.

In order to help clearing houses and their participants explore tokenised collateral, the proposed Supervisory Statement aims to provide greater clarity on how the Bank would assess applications involving tokenised collateral. In line with the principle of same risk, same regulatory outcome, different tokenised collateral arrangements may achieve those outcomes in different ways.

Sarah Breeden, Deputy Governor for Financial Stability, said:

“Through today’s consultation, the Bank continues to deliver on its secondary objective of innovation in financial market infrastructure, while maintaining financial stability. This is part of a broader agenda across the authorities and industry to facilitate the responsible adoption of tokenisation in financial markets.”

Notes to editors

1. The deadline for responses to the consultation paper is 12 February 2027. The Bank welcomes responses from across the industry, including central clearing houses and their market participants, infrastructure providers, technology firms and other stakeholders exploring the use of tokenised collateral in central clearing.
2. This consultation forms part of the wider work the Bank is carrying out with the FCA, HM Treasury and industry to support the responsible adoption of tokenisation and to provide greater clarity on the future development of the UK’s wholesale digital financial markets.