ESMA seeks evidence tokenized collateral can be cashed out in crisis

What happened

ESMA is seeking industry feedback on the legal, liquidity and operational risks of tokenized (representing an asset as a tradable entry on a blockchain) collateral before deciding whether additional EU regulatory measures are necessary. In July 2025, Eurex Clearing introduced a collateral service based on distributed ledger technology.

The European Securities and Markets Authority (ESMA) wants evidence that clearinghouses can access tokenized collateral and turn it into cash if markets come under stress. ESMA published a call for evidence Friday to seek industry feedback on the implications of tokenized collateral.

Tokenized collateral is entering live European clearing operations as banks and investors seek faster access to securities to meet margin requirements. JPMorgan executed the first live transaction for Dutch pension investor PGGM, moving securities from another custody location.

Tokenized collateral faces liquidity and ownership scrutiny The consultation covers tokenized representations of assets held in traditional financial infrastructure and assets issued directly on distributed ledgers. It also examines how those models interact with stablecoins (a digital token meant to hold a fixed value, usually one dollar), central bank money and tokenized deposits.

Key facts

• In July 2025, Eurex Clearing — introduced: a collateral service based on distributed ledger technology