Regulation· ★★★★· neutral·

ESMA Opens Consultation on Tokenized Collateral Liquidity in the EU

  • —ESMA is testing instant conversion of tokenized collateral to cash under stress and default scenarios
  • —Two asset types are under review: digital representations of traditional securities and native on-chain tokens
  • —Risks include redemption delays, smart-contract transfer limits and legal ownership questions
  • —Eurex Clearing and JPMorgan ran the first DLT collateral move in July 2025; the Eurosystem launched Pontes
Why it matters: The consultation's outcome will decide whether EU clearing houses accept tokenized collateral, broadening institutional blockchain use.
Source: Bit2Me News
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