ESMA seeks evidence on the use of tokenised collateral in central clearing

The European Securities and Markets Authority (ESMA) has published a call for evidence (CfE) on the potential use of tokenised collateral by central counterparties (CCPs). Tokenisation of collateral has been identified as one of the most significant applications of financial-market digitalisation, enabling assets to be mobilised, transferred and reused more efficiently, reducing operational friction and freeing up liquidity and capital across the financial system. ESMA is therefore seeking to understand better its implications for CCPs before determining whether any action within its remit is needed to ensure that these developments take place within a safe and sound regulatory and supervisory framework.

The CfE aims to gather evidence on the legal, market, operational and infrastructure issues raised by tokenised collateral arrangements. ESMA states that the CfE is not intended to reassess or expand the categories of assets eligible as CCP collateral. Rather, it focuses on understanding whether the use of tokenisation may affect the manner in which otherwise eligible assets are mobilised, transferred, managed, protected and realised, and whether existing regulatory and supervisory frameworks remain adequate in that context. The deadline for comments is 15 January 2027. ESMA will review feedback in Q1 2027 and, considering both responses and its broader tokenisation work, will determine the most appropriate next steps.

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