BoE consults on supervisory expectations for CCPs seeking to accept tokenised collateral

The Bank of England (BoE) has published a consultation paper seeking views on draft supervisory expectations for central counterparties (CCPs) that wish to accept tokenised versions of collateral eligible under the proposed CCP Rulebook.

The BoE also seeks views on industry interest on a wider range of tokenised asset types, should any become eligible for acceptance as collateral in the future. The expectations are not intended to create a separate regulatory regime for tokenised collateral but instead aim to provide greater clarity on what the BoE would expect CCPs to consider when submitting applications to accept such collateral through the existing supervisory process for the assessment of new forms of collateral.

The BoE's initial view is that the existing regulatory framework does not prevent CCPs from accepting tokenised forms of eligible collateral. However, it notes from industry engagement that additional clarity may help CCPs interpret and apply the requirements. The BoE encourages firms actively considering acceptance of tokenised collateral for central clearing to engage with it on potential proposals. The deadline for responses is 12 February 2027.

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