LONDON, Jan 29 (Reuters) - The Bank of England is considering expanding the range of assets that could be accepted as collateral in tokenised form, Sasha Mills, the central bank's Executive Director of Financial Market Infrastructure said on Thursday.

The BoE last year consulted on plans to start permitting tokenised assets - blockchain-based versions of financial assets - as eligible collateral.

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“Some thought is needed on traditional assets that are not already acceptable as regulatory collateral, but which the industry would like to see tokenized and then used as collateral,” Mills said at City & Financial Global’s London Tokenisation Summit.

Earlier this week, the European Central Bank confirmed that it would permit banks to use tokenised assets as collateral in Eurosystem credit operations from March 2026.

The ECB also said it was looking at how assets that are currently ineligible in securities settlement systems could become eligible in a tokenised form.

Despite significant industry hype, to date there are only a handful of live tokenisation projects and limited take-up by major banks and investors. Most pilots have remained in test environments and trading volumes are still negligible.

Supporters say tokenisation and the technology behind it will cut costs and speed up settlement times.

https://www.reuters.com/world/uk/boe-is-open-accepting-more-tokenised-assets-collateral-mills-says-2026-01-29/