ESMA has opened a call for evidence on whether central counterparties could accept tokenised collateral safely and effectively. Responses are due by 15 January 2027 and the regulator plans to assess the evidence in the first quarter of 2027.[1][2]
Models and control questions
| Model or stage | Key question |
|---|---|
| Digital twin | Can the token and underlying traditional asset be reconciled and transferred with legal certainty? |
| Native DLT asset | Is ownership, finality and enforceability clear without a conventional twin? |
| Hybrid arrangement | Can traditional and DLT infrastructures interoperate during normal and stressed conditions? |
| Default management | Can a CCP access, transfer and convert the collateral into liquidity quickly? |
| Client protection | Do segregation and insolvency arrangements remain effective? |
The consultation is not an approval for CCPs to begin accepting every tokenised instrument. It asks whether existing collateral safeguards can accommodate the technology and whether regulatory or supervisory action is needed.[1]
Default management and asset quality
CCP collateral must remain high quality, legally enforceable, highly liquid and operationally available. Tokenisation may change transfer speed or record keeping, but it does not improve the credit quality of a weak underlying asset.
Default conditions are central to the assessment. A platform that works continuously in normal markets may still be unsuitable if a CCP cannot take control, establish final ownership or sell the collateral when a clearing member fails.
For brokers and clearing members, the potential benefit is faster mobilisation and more integrated collateral management. The corresponding risks include bridge dependencies, smart-contract failure, settlement-asset risk and legal uncertainty across jurisdictions. The consultation will determine the evidence base; it does not yet change the eligible-collateral list.[1]
Sources & further reading
- ESMA seeks evidence on tokenised collateral in central clearing European Securities and Markets Authority · 9 Oct 2026 · Accessed 30 Oct 2026
- Call for evidence on CCP collateral tokenisation European Securities and Markets Authority · 9 Oct 2026 · Accessed 22 Oct 2026