The European Securities and Markets Authority (ESMA) has issued a consultation paper seeking feedback on the safe and effective use of tokenized collateral by EU central counterparties (CCPs). The consultation examines digital twins of traditional assets, natively issued on-chain assets, and hybrid models, focusing on critical operational issues including liquidation capabilities during member defaults, client asset segregation, and settlement finality. The feedback period remains open until January 15, 2027. ESMA plans to assess all submissions and determine regulatory next steps during the first quarter of 2027, signaling a structured approach to integrating distributed ledger technology into post-trade infrastructure.