Key Takeaways
- • ESMA has launched a consultation on the use of tokenized collateral by European central counterparties, covering 30 questions on settlement finality, ownership rights, client protection and liquidity risks.
- • The Council of the European Union agreed on proposals giving ESMA greater supervisory authority over significant trading venues, central securities depositories and clearing institutions, and expanding the DLT Pilot Regime; the proposals still require legislative agreement.
- • The Monetary Authority of Singapore outlined its approach to digital settlement and plans to settle tokenized MAS Bills using wholesale CBDC, following a 2025 trial involving three banks.
- • Close to $730 million left US spot bitcoin ETFs in two sessions earlier in October, while Bitcoin held the low $80,000s, with the market in consolidation below $87,000.
- • September CPI rose to 3.7% year over year, with core CPI at 2.6% annually and 0.3% monthly, keeping pressure on Fed policy expectations.
Summary
Regulators are increasingly testing whether tokenized assets can serve as collateral, settle reliably and retain legal protections under market stress. According to the article, ESMA opened a consultation on tokenized collateral in European clearing markets, raising questions about the distinction between technical control of a token and enforceable legal ownership, particularly during insolvency. ESMA is also examining whether automated collateral transfers could concentrate liquidity demands during periods of stress.
In the EU, the Council of the European Union agreed on proposals that would expand ESMA's supervisory authority over significant trading venues, central securities depositories and clearing institutions, expand the DLT Pilot Regime, and allow eligible operators to serve multiple EU markets under one licence. The Council cited approximately €10 trillion in European household savings held in low-yield bank deposits. The proposals still require legislative agreement. In Singapore, the Monetary Authority of Singapore outlined its approach to digital settlement, including tokenized deposits, stablecoins and central bank digital currencies, and plans to settle tokenized MAS Bills using wholesale CBDC. MAS has raised concerns about stablecoins maintaining their value during market stress, particularly in large wholesale transactions. The IMF has also published an October analysis on the financial stability implications of tokenization.
In crypto markets, the article describes a market that more than halved from last October's record to this summer's low. Close to $730 million left US spot ETFs in two sessions earlier in the month, and stablecoin supply grew just 1.4% over three months, according to the commentary from Bernardo Brites, CEO of Trace Finance, who characterized the current phase as consolidation rather than exit. He cited roughly $400 million in outflows so far in October and identified the Fed meeting on October 27 and 28 as the next key catalyst. He also noted that the CLARITY Act has stalled in the Senate, with rules arriving agency by agency, including the SEC's custody proposal for advisers and funds.
Markus Levin, co-founder of XYO, said September's CPI report showed headline inflation at 3.7% year over year, driven by a 9.1% jump in gasoline prices, with monthly core CPI at 0.3% and annual core inflation at 2.6%. Levin argued that sticky inflation could limit Fed easing and keep financial conditions restrictive, though he did not view the report as automatically bearish for Bitcoin. Separately, Guilhem Chaumont, co-founder and CEO of Flowdesk, said regulation is increasingly determining which firms remain in the market, pointing to MiCA as shrinking the addressable market and competitor count in the EU.
In the EU, the Council of the European Union agreed on proposals that would expand ESMA's supervisory authority over significant trading venues, central securities depositories and clearing institutions, expand the DLT Pilot Regime, and allow eligible operators to serve multiple EU markets under one licence. The Council cited approximately €10 trillion in European household savings held in low-yield bank deposits. The proposals still require legislative agreement. In Singapore, the Monetary Authority of Singapore outlined its approach to digital settlement, including tokenized deposits, stablecoins and central bank digital currencies, and plans to settle tokenized MAS Bills using wholesale CBDC. MAS has raised concerns about stablecoins maintaining their value during market stress, particularly in large wholesale transactions. The IMF has also published an October analysis on the financial stability implications of tokenization.
In crypto markets, the article describes a market that more than halved from last October's record to this summer's low. Close to $730 million left US spot ETFs in two sessions earlier in the month, and stablecoin supply grew just 1.4% over three months, according to the commentary from Bernardo Brites, CEO of Trace Finance, who characterized the current phase as consolidation rather than exit. He cited roughly $400 million in outflows so far in October and identified the Fed meeting on October 27 and 28 as the next key catalyst. He also noted that the CLARITY Act has stalled in the Senate, with rules arriving agency by agency, including the SEC's custody proposal for advisers and funds.
Markus Levin, co-founder of XYO, said September's CPI report showed headline inflation at 3.7% year over year, driven by a 9.1% jump in gasoline prices, with monthly core CPI at 0.3% and annual core inflation at 2.6%. Levin argued that sticky inflation could limit Fed easing and keep financial conditions restrictive, though he did not view the report as automatically bearish for Bitcoin. Separately, Guilhem Chaumont, co-founder and CEO of Flowdesk, said regulation is increasingly determining which firms remain in the market, pointing to MiCA as shrinking the addressable market and competitor count in the EU.
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