Bank of England consults on letting clearing houses accept tokenised collateral

The Bank of England on 29 October 2026 opened a consultation on draft supervisory expectations for UK central counterparties (CCPs) that want to accept tokenised versions of the collateral they can already take.

What the Bank proposes

The Bank’s view is that the existing framework doesn’t prevent CCPs from accepting tokenised forms of eligible collateral, provided the collateral meets central-clearing standards. It must still be possible to value, transfer and realize it when needed, including in stressed conditions.

The draft supervisory statement creates no new regime and no new obligations. It sets out the token-specific factors the Bank will expect a CCP to have considered when it applies to accept new collateral through the existing process. Under the draft UK CCP Rulebook, eligible collateral includes cash, financial instruments, bank guarantees and gold, and must be highly liquid with minimal credit and market risk. Introducing a tokenised version of collateral already accepted can require notifying the Bank, and in some cases its permission, where the risks differ, for example because the securities are delivered through a different mechanism.

The Bank says tokenisation could make collateral quicker to mobilize, including across borders, helping firms meet margin calls. Different arrangements may meet the standards in different ways, under the principle of same risk, same regulatory outcome. The paper also asks about industry interest in a wider range of tokenised assets.

Sarah Breeden, Deputy Governor for Financial Stability, called it “part of a major agenda between authorities and industry to enable the responsible adoption of tokenisation in financial markets.”

What it means for traders

Margin at clearing houses sits behind every cleared futures and options position. The paper is about wholesale infrastructure, not retail products, but it is a step toward tokenised assets being posted as margin in UK clearing. The EU is looking at the same question: ESMA has asked for evidence on tokenised collateral at EU clearing houses.

What happens next

The consultation closes on 12 February 2027. The Bank wants responses from CCPs, their participants, infrastructure providers and technology firms, and encourages firms considering tokenised collateral to engage with it directly. Separately, it expects to publish its policy response and rules for the UK CCP Rulebook in the fourth quarter of 2026.