The European Central Bank will accept assets based on distributed ledger technology as eligible collateral for the euro system

Foresight News reports that the European Central Bank (ECB) will begin accepting tradable assets issued using Distributed Ledger Technology (DLT) in Central Securities Depositories (CSDs) as eligible collateral for euro system credit operations starting March 30. Such assets must meet the euro system’s collateral eligibility standards 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, with reference to market development and the evolution of relevant laws and regulations such as MiCAR and DLT pilot mechanisms. This move aims to encourage innovation and promote the integration of European capital markets.