ESMA opens review of tokenised collateral at EU clearing houses

The European Securities and Markets Authority (ESMA) opened a call for evidence on tokenised collateral at EU clearing houses on Oct. 9, 2026, asking whether it can be used safely, according to ESMA’s announcement. A central counterparty, or CCP, stands between buyers and sellers to manage the risks of a trade. It relies on collateral to help cover losses if a clearing member defaults.

ESMA wants to learn how tokenisation could change the movement, management and protection of that collateral. Tokenisation means representing an asset on a digital ledger, or issuing it directly on one. The authority is asking whether these arrangements could work within the existing safeguards for EU CCPs.

What does ESMA want firms to explain?

ESMA wants evidence on whether a CCP could reach tokenised collateral, transfer it and turn it into cash when needed, especially after a clearing member defaults. It is also asking how firms would protect clients, keep their assets separate and ensure settlements are final when digital ledgers interact with traditional market systems.

The regulator is seeking views on whether tokenising assets that are already accepted as collateral could change their risk. The call for evidence is aimed at CCPs, clearing members and clients, as well as market infrastructure firms and providers of tokenisation or distributed ledger technology.

Which tokenisation models are covered?

ESMA is considering tokenised versions of assets held in traditional systems, which it calls “digital twins,” and assets issued directly on a distributed ledger. It also wants views on hybrid setups and how they could interact with tokenised cash and other assets used for settlement.

The question is how each model would work across the life of collateral, including when a firm is under stress. ESMA Chair Klaus Löber said collateral must remain high quality, legally enforceable, liquid and operationally available in stressed conditions and after a clearing member default.

When does the evidence period end?

Interested parties can submit responses through ESMA’s consultation process until Jan. 15, 2027. ESMA says responses will be published after the call closes unless a respondent asks for its submission not to be made public.

The authority plans to assess the feedback in the first quarter of 2027. It will then decide what action is appropriate, including possible regulatory or supervisory work within its remit. The call is an evidence-gathering exercise; ESMA has not announced a change to the rules for CCP collateral.

Sources and documents

• ESMA’s announcement — esma.europa.eu
• call for evidence — esma.europa.eu