What is being consulted on

The Bank of England launched a consultation on 29 October 2026 on requirements for central counterparties, known as CCPs, to accept tokenised collateral. CCPs sit between buyers and sellers in cleared markets and manage the risk of a trade failing.

Tokenised collateral could make it easier for firms to meet margin calls and to manage collateral more broadly, the Bank said. The consultation sets out a draft supervisory statement giving more detail on the proposed standards.

No new regime, but clear standards

The Bank said the existing regulatory framework is not a barrier to CCPs accepting tokenised forms of eligible collateral, provided the collateral meets the standards required in central clearing. The consultation does not create a separate regulatory regime or new regulatory obligations for tokenised collateral.

It covers tokenised versions of collateral already eligible under the proposed UK CCP Rulebook, including collateral accepted now and collateral eligible but not currently accepted. Tokenised collateral must remain capable of being valued, transferred and realised when needed, including in stressed conditions.

Next steps

Deputy Governor for Financial Stability Sarah Breeden is quoted in support of innovation while maintaining financial stability. The consultation closes on 12 February 2027, after which the Bank will consider responses before finalising its expectations.

Sources: Bank of England