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The Bank of England has launched a consultation on whether clearing houses should be allowed to accept tokenized forms of collateral.
Jacquelyn Melinek reported that the Bank of England stated its current regulatory framework does not prevent clearing houses from accepting tokenized eligible collateral, but emphasized that the framework must remain suitable for this purpose.
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Central banks and payment giants have previously explored the integration of digital assets in traditional finance. Visa began offering USDC-based global payouts and Mastercard partnered with BVNK to support fiat and stablecoin transactions, as reported by Jacquelyn Melinek. Separately, Melinek covered efforts by Chainlink’s Head of RWAs to outline strategies for asset managers and banks to handle real-world assets in digital formats here.