Bank of England Opens Tokenized Collateral Door With 2027 Deadline for UK Clearing

The Bank of England comes closer and closer to introducing tokenized assets into the mainstream of the UK market infrastructure. The central bank has launched a consultation outlining how central counterparties, or CCPs, could accept tokenized versions of eligible collateral without creating a separate regulatory regime for blockchain-based assets. The proposal concentrates on assets that are or could be already collaterized according to the UK’s CCP. The Bank says tokenization by itself won’t bar an asset from being accepted.