Existing rules, token-specific expectations
The proposed supervisory statement would explain the token-specific factors CCPs should consider when assessing new collateral under the existing framework. It would neither establish a separate regulatory regime nor impose new regulatory obligations.
The Bank says collateral must be capable of being valued, transferred and realized when required, even under stressed market conditions. Its draft expectations address five areas: liquidity, valuation and interoperability; settlement finality; credit and concentration risk management; operational resilience; and custody and safeguarding.
The proposals cover UK CCPs and recognized non-UK CCPs that the Bank has determined are, or are likely to become, systemically important to UK financial stability.
Potential benefits and eligible assets
According to the Bank, tokenization could make it faster and more efficient to move and manage collateral, including across borders. That could help firms meet margin calls more effectively, improve collateral management and support innovation in central clearing.
Sarah Breeden, deputy governor for financial stability, said: "Through today's consultation, the Bank is further delivering its secondary objective for innovation in financial market infrastructure, while maintaining financial stability."
The consultation uses tokenized government bonds as a recurring example. The Bank considers them a potentially high-impact use case because government bonds are already widely used by UK CCPs.
It also asks whether the proposed expectations would suit a broader range of tokenized collateral in the future, including money market fund units, gold and stablecoins. That question does not amount to a proposal to expand the CCP Rulebook's list of eligible collateral.
Related UK and EU initiatives
The consultation follows a joint Bank of England and Financial Conduct Authority Call for Input issued in May 2026 on safely adopting tokenization in UK wholesale financial markets. The regulators published a Feedback Statement in September summarizing the responses, with a more detailed roadmap to follow later in 2026.
The Bank is also developing a synchronization service for its renewed real-time gross settlement system, RT2, with delivery targeted for 2028. The service is intended to let operators coordinate settlement on new digital asset ledgers with central bank money held in RTGS accounts. The Bank launched a Synchronisation Lab in October 2025.
In the EU, the European Securities and Markets Authority opened a call for evidence on October 9, 2026, to examine whether, and under what conditions, EU CCPs could safely use tokenized collateral. Its response deadline is January 15, 2027.
Rulebook timetable and consultation deadline
For the UK CCP Rulebook, the Bank expects to publish its policy response and final rules in the fourth quarter of 2026. Those rules will take effect once HM Treasury repeals Titles III to V of UK EMIR and the associated technical standards.
Responses to the tokenized collateral consultation are due by February 12, 2027. The Bank is inviting input from CCPs, their market participants, infrastructure providers, technology firms and other stakeholders.
