ECB accepts tokenised collateral sparks XRP debate

The European Central Bank has begun accepting tokenised securities issued on distributed ledger technology as collateral for Eurosystem credit operations, marking a significant step for on-chain finance.

The policy, effective March 30, allows banks to use approved tokenised assets in exchange for central bank liquidity, provided they meet existing eligibility and risk standards.

The move has sparked debate after Axiology, an early platform involved, was built using open-source XRP Ledger code, though the ECB clarified this “does not imply the use of the public XRP token.”

The development has divided crypto commentators, with some XRP supporters claiming indirect adoption while critics point to the ECB’s clear separation between infrastructure and token usage.

The framework reflects a broader strategy by the ECB to remain technology-neutral while integrating distributed ledger systems into wholesale financial markets.

Market participants say the change could expand collateral pools and support growth in tokenised real-world assets such as bonds and funds.

Analysts caution that conflating blockchain infrastructure with token adoption risks misleading investors, as central banks continue to avoid direct exposure to public cryptocurrencies.

At the time of reporting, XRP price was $1.32.