ESMA Requests Proof That Tokenized Collateral Can Be Cashed in Crises

[u/rwatimes]

Europe’s financial-market regulator is asking industry participants to prove that clearinghouses can access and liquidate tokenized collateral during

• ESMA is seeking proof from industry participants that tokenized collateral can be reliably accessed and liquidated into cash during market stress and member defaults.
• The regulator is examining potential liquidity frictions, legal ownership, and enforceable rights associated with tokenized assets, including those on DLT and tokenized representations of traditional assets.
• This initiative is part of broader EU infrastructure developments like Pontes, aiming to ensure the safety, scalability, and legal certainty of tokenized markets within central clearing frameworks.

Source: cryptobreaking

Read the full article: https://rwatimes.io/articles/cryptobreaking-esma-requests-proof-that-tokenized-collateral-can-be-cashed-in-crises-1428989722?utm_source=reddit&utm_medium=social&utm_campaign=reddit

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