ESMA seeks evidence tokenized collateral can be cashed out in crisis
60-second summary
ESMA requests industry evidence that tokenized collateral can be liquidated during a crisis, examining legal, liquidity and operational risks before deciding on further EU regulation. The regulator asks banks, asset managers and fintech firms to detail redemption mechanisms, settlement times and legal enforceability. Clear proof could shape future rules, influencing tokenized asset adoption and market stability.
ESMA is seeking industry feedback on the legal, liquidity and operational risks of tokenized collateral before deciding whether additional EU regulatory measures are necessary.