Can EU clearinghouses turn tokenised collateral into liquidity during defaults?

Europe’s markets regulator is seeking evidence on the safe use of tokenised collateral in EU central clearing , including a practical test: can clearinghouses access it and turn it into liquidity when a clearing member defaults? The consultation examines the conditions under which EU central counterparties, or CCPs, can use these assets safely and effectively. Key takeaways The consultation tests tokenised collateral’s usability during member defaults. Digital twins, directly issued assets and hybrid models are in scope. Existing collateral safeguards must remain intact. Submissions close on January 15, 2027.

Source: The Cryptonomist