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Eurosystem to accept DLT-based collateral
27 January 2026 Europe
Image: rarrarorro/stock.adobe.com
The Eurosystem will accept marketable assets issued in Central Securities Depository (CSDs) using distributed ledger technology (DLT)-based services as eligible collateral for Eurosystem credit operations as of 30 March 2026.
Like other marketable assets, they must comply with Eurosystem collateral eligibility criteria and collateral management requirements.
These criteria include availability for settlement in eligible securities settlement systems, which must be compliant with the CSD Regulation and reachable via TARGET2-Securities (T2S).
These assets will be mobilised as collateral in line with the Eurosystem’s existing collateral management practices.
The Eurosystem will continue to align its collateral framework and collateral management practices with technological advancements in financial markets while supporting the adoption of innovative solutions, and uphold the principles of adequacy of collateral, safety, efficiency, and a level playing field.
With this in mind, the Eurosystem has launched an ambitious work plan to explore if, how, and under what criteria assets issued using DLT and not represented in eligible securities settlement systems could become eligible and be mobilised as Eurosystem collateral in the future.
To accelerate the transformation of Eurosystem monetary policy implementation for the digital era, a staggered approach is envisaged.
Under this approach, subsets of DLT-based assets could gradually become eligible and be mobilised.
The approach will take into account market developments, in particular regarding the issuance of DLT-based assets, as well as legal and regulatory developments, for example in the CSD regulation, the DLT Pilot Regime Regulation, the Markets in Crypto-Assets Regulation (MiCAR) and securities laws of jurisdictions in the euro area.
Like other marketable assets, they must comply with Eurosystem collateral eligibility criteria and collateral management requirements.
These criteria include availability for settlement in eligible securities settlement systems, which must be compliant with the CSD Regulation and reachable via TARGET2-Securities (T2S).
These assets will be mobilised as collateral in line with the Eurosystem’s existing collateral management practices.
The Eurosystem will continue to align its collateral framework and collateral management practices with technological advancements in financial markets while supporting the adoption of innovative solutions, and uphold the principles of adequacy of collateral, safety, efficiency, and a level playing field.
With this in mind, the Eurosystem has launched an ambitious work plan to explore if, how, and under what criteria assets issued using DLT and not represented in eligible securities settlement systems could become eligible and be mobilised as Eurosystem collateral in the future.
To accelerate the transformation of Eurosystem monetary policy implementation for the digital era, a staggered approach is envisaged.
Under this approach, subsets of DLT-based assets could gradually become eligible and be mobilised.
The approach will take into account market developments, in particular regarding the issuance of DLT-based assets, as well as legal and regulatory developments, for example in the CSD regulation, the DLT Pilot Regime Regulation, the Markets in Crypto-Assets Regulation (MiCAR) and securities laws of jurisdictions in the euro area.
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