Bank of England Seeks Views on Tokenized Collateral in Clearing
Edited by Steinar Vigdel Kolnes, Editor, Oslo
Proposed Bank of England guidance would require central counterparties to demonstrate that tokenized collateral satisfies liquidity and risk criteria.
The Bank of England has opened a consultation on proposed guidance covering tokenized collateral used by central counterparties in clearing.
Under the proposal, central counterparties would have to demonstrate that collateral in tokenized form satisfies requirements relating to liquidity and risk.
The consultation concerns how those requirements would apply to tokenized collateral. The guidance remains a proposal rather than a finalized policy.
Source: Cointelegraph
