The European Securities and Markets Authority has opened a consultation on tokenized collateral, asking market participants to comment on legal, liquidity and operational risks tied to its use in clearing. The review is aimed at determining whether central counterparties can access and liquidate those assets during periods of market stress, and whether additional European Union regulatory measures are needed.
ESMA Chair Verena Ross said the cross-border and large-scale development of tokenized markets will require legal certainty, infrastructure interoperability and appropriate oversight. The consultation will also examine whether the current EU framework can support a clearing house’s ability to obtain and liquidate tokenized collateral when a clearing member defaults.
The scope goes beyond collateral handling alone. ESMA said it will assess tokenized forms of assets held in traditional financial market infrastructure, assets issued natively on distributed ledger systems, and how those assets relate to stablecoins, central bank money and tokenized deposits. The consultation comes as tokenized collateral begins to enter Europe’s clearing business. In July 2025, Eurex Clearing launched a distributed-ledger-based collateral service, and JPMorgan completed the first real-time transaction for Dutch pension investor PGGM. In September 2025, the Eurosystem launched Pontes to settle tokenized asset transactions in central bank money while linking blockchain infrastructure with existing settlement systems.
The European Securities and Markets Authority, or ESMA, has launched a consultation on tokenized collateral, seeking industry feedback on legal, liquidity and operational risks as it weighs whether central counterparties can obtain and liquidate such assets during periods of market stress and whether new European Union regulatory measures are needed.
Review centers on how clearing houses would handle stress and default scenarios
ESMA said tokenized collateral is starting to enter Europe’s clearing business, giving banks and investors faster access to securities that can be used to meet margin requirements. As part of the review, the authority will examine whether current EU rules can support a clearing house’s ability to obtain and liquidate tokenized collateral when a clearing member defaults.
ESMA Chair Verena Ross said legal certainty, infrastructure interoperability and appropriate regulation are needed to create the conditions for the safe cross-border operation and scaling of tokenized markets.
Scope includes tokenized traditional assets and natively issued DLT assets
ESMA also plans to assess tokenized forms of assets held in traditional financial infrastructure, assets issued natively on distributed ledger technology, and their relationship with stablecoins, central bank money and tokenized deposits.
European market infrastructure is already moving ahead
In July 2025, Eurex Clearing launched a distributed-ledger-based collateral service, and JPMorgan completed the first real-time transaction for Dutch pension investor PGGM. In September 2025, the Eurosystem launched Pontes for settling tokenized asset transactions in central bank money, with the system designed to connect blockchain infrastructure with existing settlement rails.
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