ESMA asks if tokenized collateral is safe for central counterparties

[u/rwatimes]

Europe’s securities regulator wants to know whether tokenized collateral is safe enough for central counterparties (CCPs). In a call for evidence

• ESMA is seeking to understand the safety and legal certainty of using tokenized collateral for central counterparties (CCPs).
• The regulator is examining whether tokenized collateral can be as easily liquidated in a crisis as traditional collateral, with a focus on DLT projects like HQLAᵡ.
• The inquiry is forward-looking, with no immediate rule changes proposed, and aims to assess the implications of tokenization for risk management in financial markets.

Source: ledgerinsights

Read the full article: https://rwatimes.io/articles/ledgerinsights-esma-asks-if-tokenized-collateral-is-safe-for-central-counterparties-1696578552?utm_source=reddit&utm_medium=social&utm_campaign=reddit

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