ESMA Seeks Evidence On Tokenized Collateral Risks

The European Securities and Markets Authority (ESMA) has launched a call for evidence to gather industry feedback on the legal, liquidity, and operational risks associated with tokenized collateral, according to Cointelegraph. The regulatory review aims to determine whether existing European Union rules are sufficient to ensure clearinghouses can access and liquidate tokenized assets when a member defaults.

“We must create the conditions for tokenized markets to operate safely and at scale across borders, with legal certainty, interoperable infrastructures and appropriate supervision,” ESMA Chair Verena Ross stated.

Market Integration and Live Operations

Tokenized collateral is increasingly entering live European clearing operations as banks and market participants seek faster access to securities to meet margin requirements. In July 2025, Eurex Clearing introduced a distributed ledger technology-based collateral service, with JPMorgan executing the first live transaction for Dutch pension investor PGGM by moving securities from another custody location.

The consultation examines tokenized representations of assets held in traditional financial infrastructure as well as assets issued directly on distributed ledgers. It also evaluates how these models interact with stablecoins, central bank money, and tokenized deposits. ESMA noted that assets typically liquid in traditional formats may encounter additional risks during tokenization, such as transfer restrictions or redemption delays.

Infrastructure and Settlement Links

The initiative follows the Eurosystem’s September launch of Pontes, a system enabling financial institutions to settle tokenized asset transactions using central bank money. According to ESMA, Pontes could support tokenized collateral arrangements by bridging blockchain infrastructure with existing settlement systems.

Key facts

• ESMA published a call for evidence on Friday regarding tokenized collateral risks.
• Eurex Clearing launched a distributed ledger technology collateral service in July 2025.
• JPMorgan executed the first live transaction for PGGM using the new service.
• The Eurosystem launched the Pontes settlement system in September.