# ESMA Examines Tokenized Collateral as MAS Advances Digital Settlement

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/30397
Published: 2026-10-12T14:54:35.000Z
Updated: 2026-10-12T14:54:35.000Z
Section: Regulation

> The European and Singaporean initiatives focus on settlement finality, liquidity access and tokenized deposits, stablecoins and central bank digital currency.

The European Securities and Markets Authority (ESMA) is examining whether tokenized collateral can function reliably in central clearing, while Singapore is advancing digital settlement arrangements involving bank deposits, stablecoins and central bank digital currency.

ESMA launched a call for evidence Oct. 9 on the use of tokenized collateral by central counterparties. Responses are due by Jan. 15, 2027.

The review covers tokenized versions of traditionally held assets, assets issued directly on distributed ledgers and hybrid arrangements. It also addresses settlement assets, client protection and settlement finality.

ESMA will assess whether clearing systems could turn tokenized collateral into usable liquidity after a member default, including whether central counterparties could access and transfer it. The questions are relevant to markets that rely on collateral to manage clearing and settlement risk.

The Monetary Authority of Singapore (MAS) is advancing BLOOM, a platform for settlement arrangements using tokenized bank deposits and regulated stablecoins for domestic and cross-border applications. MAS also is taking steps to settle tokenized MAS Bills with Singapore-dollar wholesale central bank digital currency.

“Tokenised transactions will only scale if they are settled using safe and trusted digital money,” MAS Managing Director Chia Der Jiun said.

Tokenization could enable atomic settlement, in which linked transfers occur together, and continuous liquidity management. It could also cause liquidity demands and collateral movements to occur in real time.

Those changes may shift risks toward infrastructure, including data feeds, algorithms, governance arrangements and critical platforms. The developments add to broader efforts to connect tokenized assets with settlement systems and forms of digital money.

The next concrete step is ESMA’s Jan. 15, 2027, deadline for responses to its call for evidence.