The European Central Bank has taken a big step toward integrating blockchain-style finance into the eurozone’s financial system, announcing that assets issued using distributed ledger technology (DLT) will be accepted as collateral in Eurosystem credit operations.

Under the decision, marketable assets issued in central securities depositories (CSDs) that use DLT-based services will become eligible collateral from 30 March 2026, provided they meet existing rules. These include compliance with the CSD Regulation and availability for settlement through the ECB’s TARGET2-Securities (T2S) settlement system.

The Bank said it will continue to align its collateral framework and collateral management practices to keep pace with technological change, while preserving the core principles of safety, efficiency and equal treatment across markets.

It is therefore exploring “if, how and under what criteria” assets issued using DLT and not represented in eligible securities settlement systems could become eligible and be mobilized as Eurosystem collateral in the future. A staggered approach is planned, allowing subsets of DLT-based assets to be gradually admitted as market conditions and the legal and regulatory framework evolve.

The review will consider developments in EU financial law, including the CSD Regulation, the DLT Pilot Regime, Market in Crypto Assets Regulation and national securities laws, the ECB said.

“These decisions reflect the Eurosystem’s continued commitment to encouraging innovation and technological progress, thus enhancing market efficiency, and contributing to the integration of European capital markets,” the statement said.