Regulatory body ESMA is calling for industry input on the use of tokenized collateral, with a focus on liquidity and potential risks in times of crisis. The move is aimed at determining whether additional EU regulations are needed to safeguard the use of tokenized assets. ESMA is seeking evidence that tokenized collateral can be easily converted into cash during times of financial stress. The consultation is part of ongoing efforts to ensure regulatory clarity and minimize potential risks associated with tokenized assets. The deadline for industry feedback is set for June 2024.
Source
"ESMA Seeks Evidence on Tokenized Collateral Liquidity" — Cointelegraph
This article is Bitcoincryptos' summary and analysis of reporting originally published by Cointelegraph. Read the full original report at the link above.