It is therefore exploring “if, how and under what criteria” assets issued using DLT and not represented in eligible securities settlement systems could become eligible and be mobilized as Eurosystem collateral in the future. A staggered approach is planned, allowing subsets of DLT-based assets to be gradually admitted as market conditions and the legal and regulatory framework evolve.
The review will consider developments in EU financial law, including the CSD Regulation, the DLT Pilot Regime, Market in Crypto Assets Regulation and national securities laws, the ECB said.
“These decisions reflect the Eurosystem’s continued commitment to encouraging innovation and technological progress, thus enhancing market efficiency, and contributing to the integration of European capital markets,” the statement said.
