Weekly brief: DTCC's tokenisation service goes live and the Bank of England sets out how CCPs can take tokenised collateral (week ending 30 October 2026)

The week in one paragraph

DTCC's tokenisation service went live, with 20 DTC participants signed up [1]. Two US tokenised-stock venues set out atomic settlement against stablecoins, one of them with "no clearing agency, central counterparty or netting", as issuer objections to that venue rose to 38 [2] [5]. The Bank of England said its existing framework is not a barrier to CCPs accepting tokenised forms of eligible collateral and opened a consultation [6]. The ESM settled a €1 billion digital bond in central bank money through Pontes [8], and the ECB gave dates for extending Pontes and building Appia [10] [11]. Hong Kong's SFC approved round-the-clock secondary trading in two tokenised money market funds [12], DCP began a study of trade settlement against tokenised deposits in Japan [13] and the CPMI restated the role of central bank money as a settlement asset [14]. The thread: tokenised securities and collateral are moving into production infrastructure, but the cash leg is still being decided venue by venue.

Americas

DTCC's tokenisation service is live

On 28 October DTCC said its subsidiary DTC had launched the "DTCC Tokenization Service", which mints tokenised entitlements to securities held at DTC that can move between traditional and token form [1]. It runs on the Canton Network and DTCC's private Besu network, "with additional blockchain networks to be added in 2027"; 20 DTC participants have signed agreements, including Bank of America, Citi, J.P. Morgan, Morgan Stanley and State Street, and DTCC describes the service as supporting "greater liquidity, collateral mobility and capital efficiency" [1].

What it changes: The US central securities depository now issues tokenised entitlements in production with large banks as participants, so tokenised collateral no longer depends on a separate issuance route. The release does not say how the cash leg settles, which is likely to determine how far the service is used for margin and repo.

US tokenised-stock venues settle in stablecoins, without a clearing house

OKXICE TSV, a venue set up under the SEC's exemption for tokenised securities venues (the "TSV Exemption"), says each tokenised stock is "paired with a payment stablecoin" and that trades settle atomically, with "no clearing agency, central counterparty or netting" and "no margin, no borrowing" [2]. The number of issuers objecting to their stock being traded there rose from 26 in its 26 October notice to 38 in its 28 October notice [3] [2]. Separately, Canton Strategic Holdings said on 29 October that trading of its own tokenised shares on TSV LLC "is expected to begin as early as Monday, November 2", with settlement "atomic on Canton" [4]; TSV LLC's notice names USDC and SBC as the paired settlement assets [5].

What it changes: These venues replace central clearing and netting with full prefunding in stablecoins, the opposite trade-off to the DTC and NSCC model. Issuer objections appear to be limiting third-party tokenisation, which may push activity towards issuer-sponsored tokens.

UK

Bank of England sets out how CCPs can accept tokenised collateral

On 29 October the Bank of England published a consultation on a draft supervisory statement for CCPs seeking to accept tokenised collateral [6]. Its "initial view is that the existing regulatory framework does not prevent CCPs from accepting tokenised forms of eligible collateral" [7], and tokenised collateral "must remain capable of being valued, transferred and realised when needed" [6]. The paper covers liquidity and valuation, settlement finality and legal certainty, credit and concentration risk, operational resilience, and custody; it says stablecoins "may not currently be accepted by CCPs as highly liquid collateral", that making them eligible would require a change to the CCP Rulebook or the Bank's permission to waive or modify the relevant rule, and that stablecoins and tokenised money market funds may be explored through the UK-US Transatlantic Taskforce [7]. The consultation closes on 12 February 2027 [7].

What it changes: UK CCPs now have a draft supervisory text for tokenised forms of the collateral they already accept, with no new regime. Stablecoins as margin would still need a CCP Rulebook change or a Bank permission, and tokenised money market funds remain under discussion, so the Rulebook and the UK-US Transatlantic Taskforce are the places to watch.

Europe

ESM settles a €1 billion digital bond through Pontes

On 26 October the ESM said it had become the first European supranational issuer to settle a DLT-based bond through Pontes, with a €1 billion benchmark issue [8]. Clearstream's D7 DLT platform handled delivery versus payment, with the cash leg settled in central bank money through Pontes in T2; the Bundesbank acted as issuing and paying agent, and Clearstream said the bond can move from the DLT environment to traditional market infrastructure [9].

What it changes: A benchmark-size sovereign-type bond has been issued and settled on DLT against central bank money. If it is used as Eurosystem and CCP collateral, as the issuers expect, it would link issuance, cash leg and collateral in one instrument.

ECB dates the next steps for Pontes and Appia

In a speech on 29 October, ECB Executive Board member Piero Cipollone said Europe moves to T+1 on 11 October 2027, that Pontes operating hours will be extended by mid-2027 with "24/7/365 availability in 2028", and that DLT-issued marketable assets from CSDs have been eligible as Eurosystem collateral since 30 March [10]. The Eurosystem's report on the Appia Roadmap consultation, published on 28 October, says it received 127 responses and that "the role of central bank money as an anchor for the tokenised ecosystem was widely endorsed", with the Appia blueprint due by 2028 [11].

What it changes: Round-the-clock settlement in central bank money now has a date, which could ease intraday and weekend collateral movements. Respondents' support for central bank involvement in collateral management suggests Appia's design may give the Eurosystem a direct role there.

Asia-Pacific

Hong Kong opens 24/7 secondary trading in tokenised money market funds

On 26 October the SFC approved secondary trading of two SFC-authorised tokenised money market funds on a licensed virtual asset trading platform, "available around-the-clock" [12]. It said tokenised funds could use tokenised deposit capabilities developed with the HKMA under Project Ensemble to "support more efficient trade settlement and asset mobility" [12].

What it changes: A regulated, round-the-clock secondary market now exists for the instrument most often proposed as tokenised margin. Pricing against net asset value outside fund dealing hours, and settlement against tokenised deposits, are the questions this market may answer first.

Japan: tokenised deposits for delivery versus payment in trade

On 28 October DCP and STANDAGE said they had begun a joint study, with Shoko Chukin Bank taking part, of a trade platform linking electronic bills of lading with the tokenised deposit DCJPY, aiming for delivery versus payment through smart contracts and commercialisation in fiscal 2028 [13].

What it changes: It is a study rather than a live transaction, but it applies tokenised commercial bank money to delivery versus payment of a document of title, a pattern that could extend to other assets.

Global

CPMI restates central bank money as the settlement anchor

On 29 October the CPMI published a report on the roles of central banks and central bank money in an evolving payment system, covering tokenised deposits, stablecoins and programmable platforms and setting out four roles: issuer, operator, overseer and catalyst [14]. It says central bank money "provides the safest and most liquid settlement asset for systemically important systems" [14].

What it changes: In a week when US venues chose stablecoins and Europe chose central bank money, the standard setters' position favours the latter for systemically important settlement. CCPs and settlement banks may weigh this when choosing a cash leg.

What to watch next week

• Follow-ups from last week: DTCC's tokenisation service, expected in October, is now live [1]. The joint FCA and Bank of England tokenisation roadmap has not yet appeared; the Bank's 29 October paper says it will share a more detailed roadmap "later this year" [7]. The same paper discusses tokenised gold as possible CCP collateral, following the FCA's call for input on tokenised gold [7].
• 1 November: Hong Kong's revised Code on Unit Trusts and Mutual Funds takes effect, with updated guidance on tokenised products [15].
• 2 November: trading of Canton Strategic Holdings' tokenised shares on TSV LLC may begin [4].
• 2–6 November: Hong Kong FinTech Week, with the main conference on 2–3 November [16].
• Further out: 12 November, EBA and ACPR dual supervision of USDC begins [17]; 15 December, CFTC roundtable on 24/7 trading, including tokenisation [18]; 18 January 2027, the OCC's GENIUS Act rule takes effect [19]; 12 February 2027, the Bank of England's tokenised collateral consultation closes [7].