ESMA Examines Tokenized Collateral as MAS Advances Digital Settlement

The European Securities and Markets Authority (ESMA) is examining whether tokenized collateral can function reliably in central clearing, while Singapore is advancing digital settlement arrangements involving bank deposits, stablecoins and central bank digital currency. ESMA launched a call for evidence Oct. 9 on the use of tokenized collateral by central counterparties. Responses are due by Jan. 15, 2027. The review covers tokenized versions of traditionally held assets, assets issued directly on distributed ledgers and hybrid arrangements. It also addresses settlement assets, client protection and settlement finality.

Source: TokenPost