Europe’s latest evidence-gathering exercise brings the tokenisation discussion closer to the practical demands of clearing, liquidity and institutional risk management.
On 9 October 2026, the European Securities and Markets Authority launched a call for evidence on the potential use of tokenised collateral by central counterparties, or CCPs. Contributions are due by 15 January 2027. The exercise examines the conditions under which tokenised collateral could operate safely in EU central clearing. ESMA announcement
For financial institutions, this is a useful development. It places attention on a concrete application of tokenisation: making assets available to support financial obligations when they are needed.
From Digital Representation to Financial Use
ESMA’s accompanying paper distinguishes between tokens representing assets held in conventional infrastructure and assets issued directly on distributed ledgers. It also clarifies that the exercise is not intended to expand the categories of eligible CCP collateral. Its focus is how tokenisation affects the handling of otherwise eligible assets. Call for Evidence
Our interpretation is that institutions should assess the complete operating arrangement around a token. The ability to transfer it is one consideration; the ability to rely on it within a financial workflow is another.
Consider a collateral manager facing an urgent funding requirement. The relevant test is whether an asset can become usable liquidity within the required timeframe. A faster transfer process is valuable only if the surrounding custody, approval and settlement arrangements can support that outcome.
A More Practical Institutional Discussion
For institutions evaluating tokenisation projects, three questions provide a useful starting point.
First, what measurable operational problem does the proposed arrangement solve?
Second, who is responsible for each stage, including exceptions and recovery?
Third, what evidence demonstrates that the arrangement works beyond a controlled demonstration?
These questions can help investment, treasury, legal and technology teams evaluate the same proposal against a common set of outcomes. They also make it easier to compare a new arrangement with the processes it is intended to improve.
Morgan International Finance Perspective
Morgan International Finance views this review as an opportunity to sharpen the discussion around institutional adoption.
A credible project should explain its financial purpose, identify its dependencies and demonstrate its operational value. That gives institutions a stronger basis for deciding where further testing or investment is justified.
As tokenisation develops, we believe the most useful progress will come from applications that solve identifiable financial problems and can be evaluated through clear evidence. ESMA’s review offers a timely setting for that more practical conversation.