The European Central Bank to Accept Assets Based on Distributed Ledger Technology as Eligible Collateral for the Eurosystem

Foresight News reports that starting March 30, the European Central Bank (ECB) will accept tradable assets issued using Distributed Ledger Technology (DLT) within Central Securities Depositories (CSDs) as eligible collateral for Eurosystem credit operations. Such assets must meet the Eurosystem's collateral eligibility criteria and management requirements, including settlement in securities settlement systems that comply with CSD regulations and are connected to TARGET2-Securities (T2S). The plan will be implemented in phases, taking into account market developments and the evolution of relevant legal frameworks such as MiCAR and the DLT pilot regime. This move aims to encourage innovation and promote the integration of European capital markets.