BoE publishes consultation on supervisory expectations for CCPs seeking to accept tokenised collateral

On 29 October 2026, the Bank of England (BoE) published a consultation paper seeking views on the BoE’s draft supervisory expectations for central counterparties (CCPs) seeking to accept tokenised versions of collateral that is currently eligible under the proposed CCP Rulebook.

Background

 In July 2025, the BoE consulted on the draft UK CCP Rulebook as part of the repeal and replace of UK EMIR with BoE rules in its publication Ensuring the resilience of CCPs. The BoE expects to publish its policy response and rules in 2026 Q4.

Unless otherwise stated, the BoE makes clear that references in this consultation to the existing regulatory framework applicable to CCPs should be understood as references to the proposed UK CCP Rulebook and the draft statement of policy on the BoE’s approach to supervisory processes and margin permissions.

Summary

The BoE sets out the following observations and key points in relation to its draft supervisory statement:

• Innovation in CCP collateral management: The BoE considers tokenised collateral a promising near-term application of tokenisation in wholesale markets, potentially addressing existing frictions in central clearing.  However, it also makes clear that it considers these benefits depend on robust operational resilience, cybersecurity, interoperability, custody arrangements and legal certainty around ownership, settlement finality and treatment on default.  The BoE therefore favours a technology-neutral, outcomes-based approach, with initial adoption expected to focus on tokenised versions of established collateral such as government securities. The BoE is also considering how existing regulatory requirements should accommodate tokenised securities, while stressing that CCPs must retain reliable access to, control over and ability to realise collateral, particularly following a clearing member default.

• Scope of supervisory statement for current and potential forms of CCP collateral: The BoE’s draft Supervisory Statement primarily addresses tokenised versions of assets already eligible and accepted as collateral by UK CCPs. The consultation does not propose changes to the CCP Rulebook’s collateral eligibility requirements but seeks views on applying the supervisory expectations to a broader range of assets including regulated stablecoins, tokenised money market fund (tMMF) units and tokenised gold.
  • In relation to Stablecoins, the draft statement raises questions for consultees concerning backing assets, redemption, valuation, issuer confidence and reliable conversion into cash.
  • For tMMFs, CCPs would need to consider redemption arrangements, liquidity and potential procyclical effects during periods of market stress.
  • The BoE sets out that tokenised gold could improve usability and enable smaller units, but its regulatory treatment may depend on whether the token maintains the necessary link to allocated underlying bullion.
  • Across all potential collateral types, the BoE emphasises that regulatory status alone does not establish suitability for CCP use. Assets would still need to satisfy stringent standards, particularly regarding liquidity, enforceability, valuation and effective risk management.