ECB paves way for DLT-based assets as Eurosystem collateral
The European Central Bank will accept marketable assets issued in central securities depositories using distributed ledger technology as eligible collateral for Eurosystem credit operations as of March 30, 2026. This move aims to foster technological progress in European financial markets.
DLT-based assets join collateral pool
The Eurosystem will accept marketable assets issued in central securities depositories (CSDs) using distributed ledger technology (DLT) as eligible collateral for its credit operations, effective March 30, 2026. This decision integrates innovative financial technologies into the Eurosystem's operational framework.
These DLT-based assets must comply with existing Eurosystem collateral eligibility criteria, including settlement in eligible securities settlement systems.
These systems must be compliant with the CSD Regulation and reachable via TARGET2-Securities (T2S).
The assets will be mobilised as collateral following established Eurosystem practices, ensuring a level playing field.
This move reflects the Eurosystem's commitment to technological advancements while upholding principles of adequacy, safety, and efficiency.
Staged approach for DLT integration
The Eurosystem is also pursuing an ambitious work plan to explore the eligibility of assets issued and settled entirely on DLT networks, beyond those within CSDs.
A staggered approach is planned, allowing subsets of DLT-based assets to gradually become eligible.
This phased integration will consider market developments, especially in DLT asset issuance, and evolving legal and regulatory frameworks like the CSD Regulation, DLT Pilot Regime, and MiCAR.
These decisions underscore the Eurosystem's dedication to fostering innovation, enhancing market efficiency, and integrating European capital markets.