The Bank of England has opened a consultation on how UK central counterparties (CCPs), the clearing houses that stand between both sides of a trade, could accept tokenised forms of collateral that is already eligible, it said on 29 Oct. Responses close on 12 Feb 2027. CryptoWatchDesk last covered UK tokenisation on 26 Oct, when Aviva Investors tokenised a share class of its sterling liquidity fund.
The point of the paper is that nothing new is needed. The Bank says its existing framework does not stop CCPs from taking tokenised collateral, as long as it can still be valued, transferred and turned into cash when needed, including in a stress. The draft supervisory statement creates no separate regime; it sets out what the Bank would look at when a CCP applies.
That keeps the scope narrow.
Under the Bank’s proposed CCP Rulebook, collateral must be highly liquid and carry minimal credit and market risk: cash, financial instruments, bank guarantees and gold. The consultation paper names a proposed UK digital gilt, known as DIGIT, as one source of tokenised assets that could help. The Bank expects to publish its final CCP rules in the fourth quarter of 2026.
Stablecoins, tokenised money market fund units and tokenised gold are only up for comment. The paper says stablecoins “may not currently be accepted” as high-quality, liquid margin, so taking them would need a rulebook change or a waiver from the Bank.
It adds that stablecoins and tokenised money market funds may also be explored by the UK-US Transatlantic Taskforce for Markets of the Future.
“It’s part of a major agenda between authorities and industry to enable the responsible adoption of tokenisation in financial markets,” said Sarah Breeden, deputy governor for financial stability. In the US, the DTCC put its tokenization service live on 28 Oct.
This article is for information only and is not investment advice.