BoE says tokenised collateral can be used in central clearing
CCPs will be able to follow existing regulations in deciding when to accept tokenised collateral
The Bank of England has said central counterparties (CCPs) can accept tokenised forms of collateral under existing regulations.
In a consultation document published on October 29, the BoE says tokenisation – the use of blockchain-based records to exchange assets – could allow firms to improve risk management. Tokenised collateral may allow for “more efficient and rapid asset mobilisation” as well as more “streamlined collateral management processes”, the bank says.
Existing regulations were “not a
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