Tokenized Assets Face Their Real Test: A Margin Call
Photo: Coindoo
Key Takeaways Bank of England consults on tokenized CCP collateral. LCH variation margin still has to be cash. Token transfers can run ahead of ownership. Haircuts cut collateral value however fast delivery is. The Bank of England launched a consultation on October 29 supporting clearinghouses’ acceptance of tokenized forms of eligible collateral, with responses due by February 12, 2027. What the Bank of England is proposing The Bank’s position is that existing rules need not block tokenized collateral, as long as the assets can still be valued, transferred and turned into cash under stress. It is not a blanket approval.
Source: Coindoo
