ESMA opens evidence call on tokenised collateral for EU clearing

The European Securities and Markets Authority (ESMA) opened a call for evidence on 9 October 2026 on whether EU central counterparties can use tokenised collateral safely and effectively, according to ESMA’s announcement. The regulator is asking how tokenisation could affect collateral transfers, management and protection through the clearing process.

Which tokenised collateral models is ESMA examining?

ESMA’s call covers digital tokens representing assets held in traditional systems, assets issued directly on distributed ledger technology, and hybrid arrangements. It also asks how these models could interact with tokenised cash and other settlement assets, according to the consultation details.

What risks must clearing houses address?

The central question is whether a clearing house could access, transfer and convert tokenised collateral into liquidity when needed, including after a clearing member defaults. ESMA is also seeking views on client protection, segregation and settlement finality when distributed ledger technology connects with traditional market infrastructure.

ESMA says existing safeguards for collateral should remain: it must be high quality, legally enforceable, highly liquid and operationally available in stressed conditions. The regulator also wants evidence on whether tokenising collateral that is already eligible would change its risk profile.

When must stakeholders respond?

Central counterparties, clearing members and clients, market infrastructures, tokenisation and distributed ledger providers, and other stakeholders can respond by 15 January 2027. ESMA says it will assess submissions in the first quarter of 2027 and then decide whether regulatory or supervisory action is appropriate.

References

• ESMA’s announcement — esma.europa.eu
• the consultation details — esma.europa.eu